New research shows that most executives believe that competition for talent will ramp up throughout the remainder of 2018.
With technology advancing rapidly, organizations need to examine the factors that address individual desires and that enable employees—and enterprises—to thrive. Thriving organizations recognize and reward one mission critical ingredient: people. But with talent in short supply, people need to be coaxed, cultivated and inspired. Organizations that flourish will be those that think carefully about how to create experiences that meet the full range of their employees’ needs to drive growth—for both current employees and the workforce for the future that will have different experiences.
The current outlook for HR is stormy. According to Mercer’s 2018 Global Talent Trends Study – Unlocking Growth in the Human Age, 89% of executives expect an increase in the competition for talent in 2018. Furthermore, employees are restless; 39% of employees satisfied in their jobs still consider jumping ship because of a perceived lack of career opportunities.
“The good news is employers have the data to consider a variety of levers to sway retention, engagement and business performance,” said Mary Ann Sardone, Partner and North America Workforce Rewards Practice Leader at Mercer. “Organizations typically pore over compensation and benefits numbers, yet it is often the actions beyond direction compensation—such as promotions, career opportunities and aligning jobs to greater organization purpose—that have a greater impact on business outcomes.”
Understanding which elements make a company competitive, and which are differentiators, can go a long way in delivering an employee value proposition that resonates.
Broadening the Rewards Horizon
The new deal addresses each individual’s desires—a package that enables them to feel healthy, supported and energized, personally as well as professionally. Traditional contractual rewards (pay and benefits) remain the foundation for attracting talent in a crowded marketplace. Getting rewards right is important, but differentiating these elements alone can be costly, difficult and not enough. Companies that broaden their focus beyond traditional contractual rewards can reap the benefits of a more engaged and productive workforce. Employers that make career opportunities clear, transparent and flexible will stand out. Additionally, employers that support their employees’ lives outside of work through well-being programs that bolster physical, financial, emotional and social health will be more desirable. Finally, employers that create a connection between the work and the organization will attract employees that are motivated by contributing to a larger purpose, not just by a job.
Making It Personal
Above all, how employees experience their total rewards package is uniquely personal. To better understand the unique needs of individuals, employers can utilize a technique long used by marketers to create employee personas. By clustering attributes like age, income, life stage, family status, career level and certain preferences to better understand employee rewards experiences, employers can tailor programs and leverage technology (from employee portals to digital career-pathing software) to enable individualized choice based on the needs each individual values without adding undue administrative burden.
Future Focused
More often the question being asked by most employers today is whether their current programs will fit the workforce needed in the future. Will the programs offered today attract the talent needed tomorrow, especially as technological advances reshape value chains, make information more accessible, and redefine how work gets done? The approach of modernizing the rewards programs and the delivery of these programs not only supports the needs of today’s workforce, but appeals to the workforce employers want for the future. Adding programs that are uniquely valued by the future workforce or that can be supported by a digitally-engaging experience more effectively address the total rewards value proposition. Employers that shift to offering what employees value, that take a broader view of the rewards deal and that reimagine the total rewards program and experience will be well-positioned to build a workforce for the future.