The last few years have been a game changer for employers and employees alike, making boosting employee engagement a big priority.
It started with the Pandemic, which showed people that a lot of jobs could be performed just as well remotely as in person.
Soon after that came the Great Resignation, which saw a 20-year high for employees quitting their jobs, often as a result of poor treatment or-low wages.
Next, there was “quiet quitting” – employees putting in only the bare minimum effort, rather than striving to excel.
The fact is, more employees than ever are realizing that their only motivation for work is the paycheck. Plenty of other companies would pay them just as much or more, so why go the extra mile for an organization that wouldn’t go the extra mile for them?
In this new employment landscape, if you want to keep your employees engaged and motivated, you need to show them why your organization is worth their loyalty – as more than just the signer of their checks. To get them to stick around, and to excel in their productivity, you need to foster a genuine sense of belonging.
Here are a few ways you can make boosting employee engagement work in your environment.
Ways to Boost Employee Engagement
- Make It About Values. What does your company stand for? Are you committed to lowering your carbon footprint? Do you sponsor programs that benefit your local community? Engage your key employees in establishing your corporate values; then let your employees know what your company values are and what you’re doing in support of those values. Then, offer volunteer opportunities and other ways employees can support those values too. If you can engage them on issues they care about, it makes your company feel like it’s worth caring about as well. And in working for you, they can feel like they’re helping make the world a better place.
- Call Out Good Work. Most managers will call out an employee to reprimand them for a mistake or subpar performance. But many of those same managers do nothing when their employees do well. Praise is a much better motivator than criticism, and taking the time to recognize when an employee has done a good job makes them feel better about themselves, their work, and your company, and can make them more productive going forward.
- Offer Career Advancement. This means more than just dangling the possibility of a promotion. Take an individual interest in your employees and find out what their goals are in your field. Then, work with them to help them achieve those goals. Offer to pay for their education or provide the training and tools required to build the skills they’re looking for. By investing in your employees now, it will pay dividends later.
- Prioritize Wellbeing. Encourage your employees to prioritize their own mental, physical, and emotional health over the company’s needs. Don’t make them feel like if they stay home when they’re sick or take time for their family instead of their job, that they’re letting you down or their career is in jeopardy. Taking an interest in their wellbeing will both show that you care and help them perform better.
- Foster Community. Keeping employees engaged means ensuring they get along and work well with their coworkers. Sponsoring team-building activities, retreats, and regular social events can help with this, as can encouraging collaboration and providing an environment where employees can bounce ideas off one another.
Employee engagement is a two-way street. The more you care about them, the more they care about you. If you take the extra time to help your employees and make life better for them, you’ll create loyal, motivated, productive workers who help drive your company and retain these engaged team members for years to come.
While baby boomers are retiring, zoomers are getting their first jobs. According to a report by Glassdoor (one of the biggest job search and company review platforms), zoomers will overtake the number of boomers in the workforce in 2024.
The workforce demographics are changing to new generations (next-gen) that have different expectations and values from older generations. To attract and retain top talent, your company policies must include the following five key elements:
1. Multi-generational knowledge exchange programs
Though generation gaps can’t be fully removed, they can be narrowed. To help build smooth working relationships among employees of various ages, your company can establish knowledge exchange programs wherein colleagues can share their expertise with one another. For example, zoomers can teach older generations how to communicate through various forms of media, while boomers can share their tried-and-tested leadership advice to Gen Xers and younger. There’s a lot of knowledge to go around if given the right avenues.
2. Flexible work arrangements
Different generations have different priorities, but all can benefit if your company offers more options beyond the traditional 9 to 5 office setup. Although boomers are used to that, they may want to work more flexibly in terms of hours and locations to help them transition to retirement. Gen Xers and older millennials want the same flexibility to give them the time to raise their children and take care of their aging parents. Younger millennials and zoomers also want the same thing so that they can pursue their personal interests or take on gig work.
3. Support for new technologies
Millennials and zoomers are comfortable with technology, so they expect companies they work for to give them access to the latest tools and platforms. Boomers and Gen Xers are less receptive to new technology, but they’re aware of the convenience and efficiency it can deliver, so they’re willing to adapt as long as they get the right support. Your company should provide comprehensive training to help them adopt new technology and make them feel comfortable using it alongside younger employees.
4. Enhanced rewards and recognition program
A competitive compensation package is appealing to most employees regardless of age, but rewards and recognition work best when personalized according to what they want. Millennials and zoomers appreciate non-tangible benefits such as additional days off, wellness programs, personal development opportunities, and similar rewards that facilitate work-life balance. Gen Xers and boomers want tangible benefits such as bonuses, salary increases, and gift cards for a job well done. For best results, your company can offer a menu of various rewards to your employees so that they can make the choice themselves.
5. Well-defined career path
Younger employees tend to stay at a company for two years or so before moving on to the next opportunity. But they don’t change jobs just for the sake of changing; they do it in search of better pay and experience. If your company can offer growth both in terms of pay and role to your millennial and zoomer employees, they will stay — maybe not up to retirement, but at least longer than one or two years. On the other hand, older employees choose job security, so they tend to stick around, but a long tenure doesn’t equate to job satisfaction. Gen Xers and boomers also need a clear direction in their careers to remain effective in their roles.
The workforce landscape is changing fast, but your company can keep up if your policies are inclusive enough to accommodate diverse employees. More importantly, listen to what your employees have to say. They’re your best source of information about these matters.
Despite having been around for a while now, the popularity of remote work quickly increased during the COVID-19 pandemic. Working from home not only allowed employers to potentially save on future costs and manage the challenges brought about by the pandemic, but also offered their employees flexibility and autonomy.
Some employees work from home primarily because they live too far from the office to commute, possibly in another state entirely. Others just prefer to work at home. This makes some employers uncomfortable, because they believe if they can see the employee working, they’re working, and productively. And if they can’t, they just aren’t sure.
If it’s possible to shift from tracking how many hours a person works to what that employee is producing (whether it’s sales figures, number of tasks completed, or something else), that should allay that concern.
If employees get the job done, employers shouldn’t care about from where they are doing it. And if it makes a valued employee happier and less likely to leave the company, so much the better.
Here are some reasons to embrace allowing employees to work from home.
- Some employees will be more productive working at home, without office distractions.
- Some will feel valued and honored by letting them work where they feel more comfortable.
- New mothers and fathers, for whom coming into the office would cause a huge hurdle.
- New employees who you want to hire because you like their expertise/value or something else, who are not going to relocate to where your business is.
However, the shift to remote work has also sparked questions on whether continuing remote staff should receive the same employee benefits as more companies fully embrace remote work. (And possibly should the compensation package remain the same, which is another article unto itself.) The lack of traditional benefits and perks for remote employees coupled with the unique needs and challenges of remote work, may mean employers need to find a balance in their offerings if they want to attract and keep top talent.
But, if your company views remote employees as an opportunity, or your employees are practically demanding to continue remote employment, inferring that they may look elsewhere if not, you might want to rethink your strategies proactively.
Why You Should Consider Offering Remote Staff Unique Benefits
Some employers may believe that working remotely is a perk in unto itself that negates the need to offer the employees other benefits. However, offering remote staff employee benefits comes with advantages that make it a worthwhile consideration and helps you stay competitive.
Let’s face it, most employees would prefer a company that offers perks over one that doesn’t. This also boosts employee morale as you make them feel valued, which in turn increases employee productivity and overall revenue for the company.
Since remote work comes with isolation from colleagues, offering remote staff certain unique employee benefits counteracts the feelings that can come with missing out on in-office interactions and activities. This contributes to employee wellness and health in the long term.
One of the most significant benefits of offering remote staff employee benefits is reducing turnover. By providing thoughtful benefit packages, you boost your remote employees’ job satisfaction, encouraging them to stay with you longer. In this case, you lower your recruitment costs and enjoy the perks of working with a well-trained team.
Benefits to Consider Offering Remote Staff
Generally, your remote staff should receive the same employee benefits without counting remote work as an advantage. That said, the benefits you offer remote workers should mirror your company culture, meet their needs, and be in line with your budget. Below are offerings you can include in your remote staff benefits package.
- Flexible work hours and paid time off. Doing so provides better work-life balance and prevents burnout.
- Wellness programs to promote a healthy lifestyle. This can include stipends for gym memberships and exercise classes as well as counseling and therapy sessions.
- Home office support: Provide remote workers with the necessary technology and resources to set up a home office. This includes reimbursement for a computer and work-related expenses such as internet connectivity charges, maintenance fees and more.
- Coworking office rent. Some companies will pay the rent of a coworking office space so that remote workers do not have to work out of their homes every day. This might also include paying commuter travel fees.
- Learning and professional development: Provide avenues and opportunities for the employee professional development to promote career growth. You can also offer a learning stipend for career-related training.
- Parental leave and childcare benefits. Some companies provide professional care giving services to cater to parents who have to juggle between working from home and caring for the kids in the same environment.
- Home delivery subscriptions: For employers who provide in-office coffee or meals, you can include home delivery subscriptions for remote workers to blend the office culture with the remote environment.
- Variable pay. Some companies adjust pay based on the cost of living where you reside. For example, employees in Tier 1 cities like Manhattan would earn more because it costs them more to live there.
As feeling a sense of connection to others in the company is critical to employee retention, some companies also provide ways to stay connected. For example, they might do a regular online get-together where employees assemble and talk about non-work-related things, such as hobbies.
One company we interviewed randomly pairs together two remote employees (or one remote employee and one non-remote employee) for 30-minute online chats called “Virtual Coffees.” They also offer reimbursement up to $15 for lunch once a week. And they try to get all their employees together once a year at an offsite event, with plenty of opportunities for mingling.
Another provides a $40 stipend per person when any three or more employees (at least one of them virtual) get together for dinner or drinks. They also offer a $75 quarterly entertainment bonus to attend concerts, shows and the like.
It is important for remote employees to receive employee benefits. However, the type of benefits may vary depending on the type of work, individual employee needs, budget, and company culture. By striking the right balance, you can adequately support your remote staff and make them feel valued, which ultimately boosts their job satisfaction and contributes to overall company success.
There is a growing body of research that suggests that companies that issue total compensation statements to their employees can enjoy a number of benefits, including:
- Improved employee satisfaction and engagement leading to increased employee retention. When employees understand the full value of their compensation package, they are more likely to be satisfied with their job and engaged in their work. This can lead to increased productivity, decreased turnover, and a stronger company culture.
- Attraction and retention of top talent. In today’s competitive job market, top talent is more likely to consider a job offer from a company that is transparent about its compensation and benefits. A total compensation statement can help to set your company apart from the competition and attract the best and brightest employees.
A study by the Society for Human Resource Management (requires login) found that companies that issue total compensation statements have lower turnover rates than those that do not. The study also found that employees who receive total compensation statements are more likely to be satisfied with their jobs and to recommend their company to others.
Another study, by the consulting firm Towers Watson, found that companies that issue total compensation statements are more likely to attract and retain top talent. The study also found that employees who receive total compensation statements are more likely to be engaged in their work and to be productive.
The research suggests that there are a number of benefits to companies that issue total compensation statements to their employees. These benefits include improved employee satisfaction and engagement, attraction and retention of top talent.
The study, The Impact of Total Rewards Communication on Employee Turnover Risk (2020) by CEB (now Gartner). found that companies that provided total compensation statements to their employees had a 50% lower turnover risk than companies that did not. The study also found that employees who received them were more likely to be engaged in their work and to feel that they were fairly compensated.
The study, The Effects of Total Compensation Statements on Employee Morale and Satisfaction (2014) by the Society for Human Resource Management (SHRM) found that total compensation statements can help to improve employee morale and satisfaction. The study found that employees who received them were more likely to say that they were satisfied with their overall compensation package and that they were more likely to recommend their company to others as a good place to work.
According to a survey conducted by Payscale in 2020, 38% of U.S. companies provide total compensation statements (up from 36% in their 2019 survey).
How do Total Compensation Statements help with recruiting and retention?
- Total Compensation Statements offer employees a much clearer understanding of their total compensation.
- Employees have a better understanding of their employer’s investment in them. According to a survey conducted by Harris Interactive and Charlton Consulting Group, 51% of employees underestimate the value of their total compensation.
- Employees are better able to see that they are being fairly compensated. According to this study by PayScale, most employees do not realize they are being paid fairly.
This article is sponsored by COMPackage – an online solution that allows you to easily, securely and inexpensively generate employee total compensation statements.
Research has proven that employees are more satisfied with their employer relationship if they receive an annual total compensation statement. And every employer wants to stand out with their employee benefits. Unfortunately, your brand can’t stand out if your benefits are only the ones every employer offers. Nearly all US companies guarantee access to 401(k) and health insurance. Consequently, employers have to go above and beyond to offer unique benefits that current staff feel are worth staying for, and future employees find enticing.
Prospective employees will assess your company’s benefits while deciding between job offers. With unique and carefully thought-out benefits, employers can secure the services of the brightest minds and hardest workers in any given industry.
Some employers don’t take credit for certain benefits they offer their employees, which leads to an unappreciation of the benefits. Adding the following benefits, and then adding them to your employee benefit statements, can help your personnel appreciate the benefits they get.
Note that you can probably attach a dollar value to most of the benefits given below. But even if you are uncomfortable doing that with some benefits, tools like COMPackage still allow you to list the benefit without showing a dollar amount.
Include free parking in your employee benefit scheme if your company made the decision to reside in the suburbs where there is no cost for parking. Besides being an incentive for driving among employees who opt to drive to work, free parking makes commute a hassle-free experience since employees don’t have to worry about parking fees or parking spots.
It will help to add Paid Time Off (PTO) including holidays, sick days, and vacation time in your total comp statements if your staff will access a designated period of paid days off. Many administrators often think that this time off is a part of an employee’s pay, but is it really any different than health insurance? You pay for it; why not ensure employees know it’s a benefit?
Access to Company Vehicles
A company car/truck gives employees a professional image. Moreover, the vehicle enhances the employee’s productivity, thanks to the availability of a reliable means of transport. Your employee benefit statements should have use of company car/truck since the vehicle will eliminate the employee’s need to purchase and maintain their own car, typically replacing or at least reducing the cost to maintain a second car in their household.
Company-paid Cell Phone
Your employee benefit statements should have company-paid cell phones, especially if your employees need one for their job, and the company pays for the phone’s associated costs like internet, voice, and text plans.
Employees can enhance their skills and competencies within the workplace, thanks to the company’s in-house trainers. Include in-house training in your employee benefit statements if your company has programs that help employees attain professional growth. Offering your employees free, in-house training will give them an opportunity to learn about important aspects of their work. Classes may also give them a chance to apply for other jobs within the workplace. Management training, for example, will prepare them to become a team leader or supervisor. And placing an equitable value on it is fair for a total compensation statement.
School Tuition Reimbursement
Many employees choose to further their education by returning to college and earning their degrees. If they are working toward a degree that will help them advance within their current job or move up toward a management position, school tuition reimbursement will allow them to earn their degree without placing a financial burden on their family. This can be a huge incentive for staff that want to grow; it’s especially of interest to millennials!
Exposure to industry best practices, motivation and engagement, professional development, and networking opportunities are some of the benefits employees gain from out-of-town conferences. Consequently, it will help to list out-of-town conferences in your employee benefit statements when your company will be paying for your employees’ expenses during the out-of-town conferences. Employees love to be on the receiving end of these valuable life opportunities.
Health and Wellness Benefits
Gym memberships, yoga classes, massage therapy, and corporate challenge athletic events will encourage your employee to live a healthier lifestyle. When employees make the choice to get healthy, their mental outlook and productivity levels improve. They are more excited to come to work and look forward to facing new challenges. Paying for these programs will make a lot of employees happier and benefit the company in the short and long run.
Health Savings Accounts
Health savings accounts (HSAs) are tax-deferred and provide extra benefits that support your health insurance. The money in the HSA can be used for healthcare purchases like bandages, wraps, vitamins, supplements, and over-the-counter medications that your family would normally pay for out of pocket. Both the employer and employee put money into the account which can be used at any time for these types of purchases.
If your company is inclined to provide stock options to your most valued employees , then show it on your total comp statement. An employee is more likely to be vested in a company if they feel as if they have a stake in what is going on. The shares they own will also provide dividends they can rely on for their future. Over time, it can grow into quite an investment.
Access to Employee-Paid Benefit Programs
Employers who offer access to employee-paid benefits that take advantage of discounted group rates (e.g., Aflac supplemental insurance) should highlight these. This would include things like offerings that allow company staff to enjoy discounts on gym memberships, dental care plans, and so on.
Employee compensation and benefits – and your ability to communicate these – will determine the workforce available to your company. Note that companies are in a never-ending competition for top talent, and this is why you need to keep up with the benefits your prospective hires deem meaningful. Offering sought-after (in-demand) and competitive benefits can help your brand land the talent it desires.
Lastly, you won’t have to worry about losing your favorite staff members to competitors if your employees enjoy great benefits and compensation. And always remember to include all the benefits your employees will enjoy in their annual total compensation statement.
1. Hourly Top Box Scores
Visually show the total hourly rate. (read more)
2. Illuminative Metrics™
Show all kinds of useful compensation-related information that is excluded from total compensation calculations. (read more)
3. Digital Delivery
Enable employees to access their Total Compensation reports online. (read more)
A couple of decades back, being in possession of cannabis would land you in big trouble. That’s because the substance was classified as a schedule 1 drug alongside other drugs like heroin and LSD. The general perception was that using marijuana has negative side effects and was a gateway drug to other stronger substances.
However, there has been more research looking at the effects of cannabis in different regards. Countless studies highlighted the positive effects of marijuana use. These include ameliorating pain, nausea, PTSD, cancer, glaucoma, and much more. Consequently, this led to significant changes in how the drug is perceived.
Over the last few years, marijuana has been legalized for medical and recreational use and is quickly becoming one of the most used drugs in the United States and many other countries. This change of perception and widespread use means someone (maybe many people) you know is likely using marijuana, either for medical or recreational purposes.
Marijuana legalization and the workforce
According to a study published in the Society Human Resource Management Journal, over two-thirds of the workforce is in favor of marijuana legalization and use. This clashes with the current employers’ drug test that screens for various substances, including cannabis.
With the cannabis legalization trend on the rise, new policies are needed to monitor what substances should be included in a drug test. Currently, employees with authorized medical marijuana use are exempt from the ramifications of testing positive for the drug test.
What effect does marijuana have on your staff?
Marijuana is classified as a drug as it has physiological effects when ingested. Consequently, any employee regularly using cannabis or cannabinoid products will experience these effects. Some of the notable physiological effects of marijuana use are:
- Reduces pains and aches
- Alleviates nausea and vomiting
- Causes short-term memory problems
- Slows reaction time
- Relaxes the body and mind
- Reduces stress and anxiety
While research on how marijuana affects you have greatly progressed, there are still challenges to conducting these studies and research. As such, many employers have internal policies on marijuana use. Some professions are arguably more tolerant of marijuana use compared to others.
In many cases, modern jobs like those in the tech industry are more tolerant of cannabis use compared to traditional jobs. The generational shift of the workforce to include a younger workforce will likely influence the future of marijuana use in the future.
Does cannabis use affect employee output?
An employer’s bottom line is driven by having a productive workforce. Employers who view marijuana use as a deterrent either discourage the use or create policies to prohibit use. At the federal level, marijuana is still an illegal drug. Many employers set in-house policies to manage the use and perception of marijuana.
General studies reveal marijuana can have a negative effect on aspects like short-term memory and attention span. Admittedly, additional studies are needed to shed more light on the effects of marijuana use. As such, most employers will stick to setting internal guidelines.
Should a company continue to not hire, or terminate an employee who is a cannabis user?
In the past, failing a drug test for cannabis meant termination for many employees. This may no longer be appropriate for many companies. In this author’s opinion, most companies shouldn’t be terminating people because they use cannabis outside of work. But, if they come to work high, you should consider sending them home with a warning. If they do it more than once, you might have more severe consequences, including termination. Of course, there might be certain industries and job functions that need to enforce strict restrictions on the use of cannabis. We’re not suggesting they change. But for most jobs, employers may want to rethink their policies.
As seen above, marijuana use and legalization are rising trends and the perception of cannabis use is gradually shifting. This implies current and future generations are much more likely to be using cannabinoid products. With more states legalizing marijuana use, employers need to address how to tackle the issue.
This article is brought to you by COMPackage, the leader in DIY total compensation reports. Help your recruiting and retention efforts by clearly showing your employees and recruits the total package you offer.
Finding reliable employees today is hard enough. There are many people, men and women alike, who are being forced to pass on their jobs because good daycare is too expensive, or it’s too difficult to find reliable childcare help. Many employed parents do not really have an option that ensures the safety of their children. A number of progressive companies that offered remote work for employees with children are willing to accept the challenge again and offer onsite daycare. They are doing what they need to do to get good employees back into the office.
Employees with children face the dilemma of earning a paycheck only to turn most of it over to their daycare provider. The amount of money many parents clear after this single transaction often won’t pay a utility bill, let alone provide substantial support for their family. They have two basic options. They can find a job that allows them to work remotely, or they can quit their job and go on financial assistance.
One of the biggest worries for many parents is that they are unavailable to their children while they are at work. Onsite daycare eliminates that worry, giving parents opportunities to connect briefly with their children and to be there for them in case of an emergency. Parents can check on their children at any time during the day giving them both peace of mind and security.
Offering daycare/childcare for parents who have small children can be a financial and emotional lifesaver that will allow your employee to give you their very best all day, every day. And consider how much this helps build loyalty!
You need not put the entire burden on the company. It is reasonable to require some co-payment from the employees using your daycare. But it will still be much more convenient, and cost far less than a household would have to pay themselves.
Be sure to learn your state’s regulations concerning childcare. Before you open the door to onsite childcare/daycare, learn as much as you can about your state’s regulations for the childcare industry. There are rules, but nothing too onerous that companies can’t manage.
Instead of turning away some of the best workers, give them what they need to be successful. Providing quality childcare to parents who need it the most gives you an opportunity to explore what talent is actually available. They get to earn (and keep) the majority of their paycheck, and you have access to a workforce who is grateful to be able to provide for their family.
Whatever benefits you choose to provide, total compensation reports, like those from COMPackage, allow you to show your employees their true total package. This can be a great support in both recruiting and retention, just as company-supported childcare can be.
As organizations across different industries embrace remote and hybrid work schedules, many find it challenging to coordinate distributed teams. Workplace flexibility is often regarded as a competitive advantage in today’s labor market.
If you recently introduced flexible working in your company, you may have considered hiring a Head of Remote employees. This is what many organizations are currently doing, and there are many benefits to it. We have covered a few things you should know before hiring a Head of Remote.
The Shift to Remote: Benefits and Challenges
Whether operating in a hybrid or fully remote setting, there are many benefits that flexible working offers to both employees and employers. Employees save time and money on long commutes and can choose when, how, and where they want to work. Moreover, employers benefit from a diverse workforce capable of driving innovation, productivity, and business growth. And hiring remote workers opens up a a much larger, nearly unlimited, geographic recruiting area to draw from.
However, with remote working comes the risk of poor work-life balance, disengagement, and increased burnout. Similarly, some employees working remotely report having less spontaneous communication with colleagues, loneliness, and lack of learning and mentorship opportunities as critical concerns in the remote work world.
But despite these reports, several studies point to a maturing remote and hybrid work culture, with many employees threatening to quit if their employers require them to work full-time in the office. Some surveys found that 50% of employees would take a pay cut to have the option to continue working remotely. Also, check out our prior article about alternatives for paying remote workers.
Why Hire a Head of Remote
In light of the current developments, most organizations know that returning to the pre-pandemic work world isn’t an option. So, they are now finding ways to strengthen remote and hybrid work strategies to ensure the main challenges identified by employees are resolved or eliminated. One way of doing so is by hiring a Head of Remote who will have a seat at the table.
Ideally, a Head of Remote is responsible for designing and optimizing the company’s remote strategy. They are the ones to address workplace culture issues, burnout, poor collaboration, technology challenges, and employee disengagement. An ideal candidate for the job is someone good in project management, communication, strategy execution, and problem-solving.
The Head of Remote employees should also be the link between the management and hybrid workers, ensuring a smooth flow of information between fully remote and hybrid or in-office staff.
Make it Work for You
Offering remote and hybrid work schedules is one way of winning the talent war and ensuring you hold on to the best people for the long haul. Organizations looking to maximize the benefits of flexible work schedules while minimizing the disadvantages must invest in effective remote strategies. Hiring a Head of Remote is a great way to delegate remote functions to someone who can influence company decisions and has the capacity to allocate the necessary resources.
This article is brought to you by COMPackage, the leader in DIY total compensation reports. Help your recruiting and retention efforts by clearly showing your employees and recruits the total package you offer.
Over the last two years, talent shortages and retention challenges have risen to the top of the corporate agenda. Today, organizations are finding ways to attract and hold on to their best people. The pandemic made workers rethink their priorities, and many chose time with family and loved ones over long working hours and stressful commutes.
This is what eventually led to The Great Resignation, where millions of employees across industries exited the workforce to find more flexible jobs, start their own businesses, or retire early to have more time with loved ones. In light of what’s happening in today’s workplaces, we’ll explore if and how employee benefits reports, also called total compensation statements, can help stem turnover.
Hiring and Retaining Talents in the New Normal
As HR leaders and their strategic advisors work on ways to hire and retain talents, they face the challenge of offering employees what they want while keeping the business running effectively and at a profit.
One of the first steps to achieve this goal is to consider restructuring employee benefits. But this isn’t the silver bullet. You still need to nurture a positive workplace culture, offer flexible working schedules and competitive salaries, and show your people that you value, respect, and care for them.
Before restructuring employee benefits, consider conducting a comprehensive audit of the current benefits and follow up with a survey to better understand what your employees want. Afterward, you can compile a comprehensive report that will inform your decision-making.
Cost of Employee Turnover
When employees leave your organization, especially your top performers, it’s often an indication that your retention strategies are broken or not competitive. Some factors that drive employees out of the workplace are poor company culture, lack of flexible work schedules, and non-competitive pay and benefits. Others are poor internal mobility and lack of career development opportunities.
Employee turnover costs the organization in many ways. First, employee departure negatively affects the morale of the remaining staff, who may also be compelled to leave. Other costs come from advertising for open positions, recruiting, training, and onboarding new hires.
Depending on the quality of acquired talents, you may also spend a lot of time and money accelerating new hires to ensure faster time to traction. And if the new hires fail to work out, you’ll have to start over again.
Making Employee Benefits Work
The employee benefits package aims to ensure workers feel comfortable, satisfied, and motivated working for your company. Without a well-implemented employee benefits plan, you will surely lose your top talent to your competition. That said, not all employee benefits work. Some are nice-to-have packages that offer little to no value to most employees.
When done right, you may find that it’s more beneficial to replace paid family leave with flexible work schedules or to allow employees to choose between options, such as free gym memberships and caregiver benefits, instead of making it a “take-it or leave-it” plan.
A secret to implementing effective employee benefits is to get to the bottom of employee needs and what matters to them. Instead of speculating what your people want, you should listen more to understand employee grievances before restructuring the benefits.
At the end of the day, you’ll have the benefits you have. But what so many employers neglect to do is to spell out for employees their entire compensation package using total compensation statement software such as COMPackage.com. After all, if you are being generous and your people understand what they’re getting, they are simply more likely to stay with you.