The Great Resignation Is About Employers, Not Employees Business News

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Attracting and retaining talent in today’s economy is increasingly difficult. Enter rewards compensation – the cutting edge of employee rewards

If you feel like we’ve all been talking about the big quit lately, you’re not alone. We keep talking about it because it’s such a big part of every business leader’s vision – and the organizational mindset about how best to retain employees in such a time is rapidly changing.

There is growing evidence that employees are no longer happy with the average salary and benefits. Even an above-average salary isn’t enough to retain employees if an employee doesn’t care about their job – or perhaps, more importantly, doesn’t feel like their job cares about them. . them. A competitive salary is only the first step in showing this kind of employee loyalty, but organizations need to create the right kind of ecosystem to support employees in different ways.

Without such a comprehensive ecosystem, retaining top talent will continue to be difficult. In a SHRM survey last year, 49% of executives surveyed said their company had experienced significantly higher turnover in the past six months, and 84% said positions were unfilled. longer than normal. Clearly, attracting and retaining the right talent is of particular importance to many business leaders. What can employers do to stem this tide?

The first thing to do is find out exactly why employees are leaving and what attracts them to other opportunities. Another SHRM study found that there is a disconnect between why employees leave and why executives think employees leave. Consider the following: % of employees are looking for a new job because they want better pay, but only 26% of managers think employees want better compensation. And that’s not all: 36% of employees search because they want better benefits, but only 28% of managers think employees want better benefits.

Clearly, there is a big disconnect between what employees want and what business leaders think employees want. Leaders need to understand that to recruit talent and retain employees, they need a total rewards strategy, which includes employee loyalty.

But money is not the only way to achieve this. Loyalty isn’t created with number signs – it thrives best in an environment of care and emotional connection. Many think these principles have nothing to do with the job, but to thrive in the challenges ahead, we need to integrate them into our existing employee retention strategies.

How to boost your compensation strategy

To keep good talent and attract new talent, we need to make sure people feel valued at work through both compensation AND recognition. Creating a culture where employees feel valued (another work-related way to show care and emotional connection) plays a huge role in retention.

Here are some other options to consider for increasing retention.

Offer flexible work options: Fully remote and hybrid work models are two great options that can improve your compensation overall. Some companies are even shortening their work week to provide more flexibility to their workforce. This kind of dedication to employees’ personal lives creates a strong, healthy loyalty that goes both ways.

Recognize regularly: Recognition is a crucial part of your compensation strategy. In a recent study by Maritz, more than 40% of respondents said they consult a company’s recognition program when considering a job. Also, don’t assume that recognition and rewards must include monetary compensation. Good examples of non-monetary recognition include verbal thanks, handwritten notes, formal certificates of appreciation, or simply meaningful conversations between a manager and a direct report. It costs very little to express thanks and appreciation.

Provide educational support: When employees know that their employer cares about their future and their success, they will feel valued. This is where training opportunities and industry certifications come in. Adding career growth to your enhanced compensation package will help employees learn additional skills, which will benefit them and the organization in the long run. Loyalty is a two-way street, and investing in your employees is a great way to keep it that way.

Monetary compensation is one piece of the puzzle

Money is still a big motivator for employees and you shouldn’t ignore it as part of your compensation strategy. However, don’t be pigeonholed into thinking it’s the only thing you can do. If you already offer competitive compensation, consider these options to entice talented employees to come – and stay.

Performance-based bonuses: The type of talent you want to retain is the type of talent that will exceed expectations more often than not. These are the types of…