As we roll into spring and higher temperatures, the job market continues to heat up along with the weather. According to a recent Willis Towers Watson’s 2022 Global Benefits Attitudes Survey, 53% of employees are “open to leaving their employers.” Sorry, folks, but the Great Resignation is not yet a relic of the past.
As employers scramble to hire and retain workers, one trend is clear: salaries are rising. In fact, according to federal data, employers in the private sector have increased hourly pay by 5% in the last year, and the end of 2021 saw compensation rates increase faster than they have in nearly 20 years. But the concerns of many job seekers extend beyond just salary, and competitive employers are looking for ways to create a solid compensation strategy that will both retain employees — and attract new talent. Here are three ways you can strengthen your compensation package offerings in the current job market.
1. Perform a compensation analysis
Workers’ wage expectations have significantly increased in the last few years. If you are looking to fill some recently vacated or newly created positions, you need to ensure you are offering competitive wages to capture the best talent. Conducting a compensation analysis will serve as a benchmark for your organization against its competitors and allow you to create or adjust compensation packages to be market-worthy and appeal to current and potential employees. Offering competitive wages also plays a big part in how well you retain employees. If a current employee is looking through job ads and sees they have a comparable or better package at their job with your company, they are less likely to jump ship.
Pro Tip: When determining whether your compensation plans are competitive, make sure you’re using a salary survey conducted by a reputable salary survey firm. Although these surveys are not free, you can get a discount by working with a compensation consultant who includes access to the surveys as a part of their service fee or by participating in the survey to get a better deal.
2. Make compensation DEI a priority
Diversity, equity, and inclusion (DEI) is a top priority for employees, and if you want to retain them, you’d better pay attention. So how do you incorporate DEI into your compensation plan? One method is to assess your employee pay, how pay rates are calculated and what factors they are dependent on.
Doing an audit of your employee pay and making sure your pay administration policies are applied equally to everyone in your organization is a great way to reveal pay inequities. Remedying these inequities is a great step toward achieving DEI in compensation.Another way to be conscious of DEI at your organization is by thinking outside the box when it comes to benefits. You should ask your employees what kinds of non-traditional benefits they would appreciate most. Employers today are offering stipends for health and wellness, workstation furnishings, cell phones, and more. Mental health is also a hot topic these days, and offering it as a benefit without any cultural stigma attached is a great way to promote a more inclusive culture.
Pro Tip: Remember, what benefits you decide to offer your employees should be largely dependent on their unique needs — not based on what is hot right now. Collect feedback from current employees before making any decisions to avoid spending money on benefits and extras no one appreciates or will use.
3. Offer a work/life balance to retain employees
According to a poll of over 2,000 US workers, 81% listed a flexible schedule as important when considering a job offer. Workers are increasingly concerned with having a good work/life balance, and your workplace needs to demonstrate a commitment to this value to retain and attract new employees. Consider augmenting your compensation packages with perks such as additional PTO, generous maternity and paternity leave, and the option to work remotely to show that you care about your employees’ wellbeing both at and outside of work.
Pro Tip: Make sure people know that a work/life balance is a part of the culture at your organization — not just a line item on their compensation package. Leadership should openly demonstrate their own work/life balance and actively encourage employees to take time to tend to their personal needs. Create an open line of communication between managers and employees and be careful to avoid accidental negative outcomes, such as missed opportunities for promotions, for employees when they decide to take personal time.
Build a retention strategy that works for your organization
The world is changing, and organizations need to keep up if they want to retain employees and recruit new talent. While creating a new retention strategy can be overwhelming, a qualified compensation consultant, like the ones at Compensation Works, can help make the process go smoothly and get you market-ready in no time.
Want assistance creating a retention strategy that works for 2022? At Compensation Works, we help organizations tailor their compensation and benefits plans to work for today’s competitive job market. Contact us today to learn how we can help your business.