No one wants to feel like a number. In fact, people are evaluating their careers and overall job satisfaction by a new set of metrics. This is especially true of up-and-coming generations. Employers are facing a paradox: how can they create a unique and personalized employee experience while also making it scalable and affordable to manage? To solve this unique challenge, many employers are turning to the power of a personalized total rewards statement.
As the demographic of today’s workforce continues to change, new motivators affect how a company attracts employees. In addition, the appeal of the nomadic gig economy poses a serious threat for companies trying to retain top performers who value the freedom of a freelance lifestyle. Despite these fundamental changes in the job market, a study conducted by MetLife finds that customized total rewards statements are a useful tool in both attracting and retaining employees in today’s job-seeker market.
Personalization Matters to the Team
In the past, total rewards statements were a once-a-year occurrence. With the rise in “on-demand” everything from banking to shopping, people have become accustomed to being able to login and manage their lives via a customizable, online system. Employees value the ability to check their total rewards statements anytime, anywhere. Providing access to personalized statements whenever needed serves a dual purpose: it provides an opportunity to deliver a personalized experience that employees have come to expect and it allows employees to validate their value within an organization on-demand.
Competing for Talent in an Employee Market
There’s little doubt that today’s job market is driven by the job-seeker. As candidates grow more sophisticated with the way they receive information, attracting today’s tech-savvy candidates requires understanding their motivators and appealing to them. Similar to static total rewards statements, job offer letters have become forgettable. Today’s candidates want to feel great about a possible job offer. They want to feel like they’re working for a forward-thinking company that truly cares about employees as people, instead of cogs in a machine. Offering customized, digital job offers complete with a flushed-out compensation statement can be an essential component to establishing an attractive company culture, increasing the chances of landing top talent.
Whether your challenge is employee retention or it’s attracting talented job candidates for hard-to-fill positions, it’s possible that the level of personalization in a total rewards statement can make a huge impact on how your company is portrayed in the minds of today’s on-demand, tech-savvy workforce.
See You at the 2017 Total Rewards Conference
If you want to learn more about the current tech-savvy workforce and how to attract them to your organization meet up with us at “On Their Terms: Engaging Millennials (and Your Entire Workforce)” at the #WorldatWork 2017 Total Rewards Conference in #WashingtonDC. See you there!
On Their Terms: Engaging Millennials (and Your Entire Workforce) – Tuesday, May 9, 9:45 AM
- Amy Stern, Director of Employee Engagement Research, BI Worldwide
- Christy Thompson, Vice President of Humans, Sunglass Hut
The Pew Research Center released a study comparing the value of paid leave against other workplace benefits and whether paid leave initiatives should be mandated by the government or the organization itself. In order to ensure HR initiatives are aligned with current employee motivators, according to the findings, 38% of those employed who have taken leave for family or medical reasons say that paid leave would be the most helpful benefit offered by employers. Additionally, roughly three-quarters of paid leave supporters say that paid leave should be provided by the employer, rather than the government.
Paid Leave as a Major Incentive
Furthermore, 81% of Americans with a Bachelor’s degree say that companies who offer paid leave better incentivize employee retention. The most interesting aspect of this statistic is the fact that this view is widespread across various demographics and partisan groups. It seems that most employees are in agreement that paid leaves plays a major role in incentivizing loyalty.
This study underscores a wider trend of employees shifting their values towards benefits as a means of incentivizing retention and engagement, rather than a pay raise. By taking time to understand employee motivators, organizations can better position themselves to engage with employees, thereby increasing their potential to attract and retain today’s top talent.
To learn more about the benefits employees value most, read the full Pew study here.
People analytics is listed as one of the top 10 areas for HR teams to focus on in 2017, according to a recent survey by Deloitte. Driving this trend is the emergence of cloud-based programs that record real-time behavioral data from employees. The growing availability of people analytics challenges HR professionals to capture, interpret and leverage the data to impact factors such as talent acquisition, employee engagement and employee performance.
Luckily, these challenges are also major opportunities for forward-thinking HR teams and business leaders. Here are a few ways people analytics can be used to drive employee recruitment, engagement, retention and performance:
HR teams that pull data from internal employee surveys gain critical insight into which benefits are most valued and most used. Research shows that 79% of job seekers value more robust benefits to flat-out pay increases. Keeping track of which benefits are making the most impact to current employees shapes how HR teams build and market unique value propositions outside of traditional monetary compensation. In such a competitive job market, a unique employee perk or benefit can make all the difference in converting potential candidates. HR teams that focus on analyzing current data to drive how they market nontraditional compensation have a much better chance at staying relevant and recruiting top talent.
Engagement and Retention
After hiring an employee, it is important to keep them engaged. Deloitte reports that 91% of workers stay in a job less than 3 years. By recording employee data and analyzing trends in the workplace, HR teams gain a better understanding of the overall employee experience. Figuring out which elements are most positiveand which are not gives critical insight that informs winning retention strategies. Analyzing the hard data on the overall employee experience mitigates the guesswork of what’s driving engagement and retention. Alternatively, seeing where employees are satisfied, and taking steps to align core policies and programs with employee interests and motivators will help employees feel their input is valued, which directly boosts retention.
People analytics can also be impactful in monitoring employee performance. A study shows that top performers can deliver 400% more productivity than the average performer. Having ground-level data will highlight and profile top-performing employees so they can be properly recognized. Additionally, people analytics has the potential to identify under-performing managers or departments, so HR can create interventions, move team members around accordingly, or provide training as needed. The ability to record and analyze real-time information about employee performance optimizes productivity and proactively recognizes potential issues with under-performing teams or managers.
As access to people analytics increases, so can the impact of the HR department. Having data that can be used to inform decision-making and investments equips HR to have a greater role in driving business goals. This requires a proactive mindset from HR leaders – companies that seek out ways to capture people analytics and leverage it in their day-to-day tasks gain an edge over those that use the data as a reactive measure of addressing elements like engagement and retention.
For more insight on how HR can address workforce issues in a proactive manner, check out our blog, “Thinking Forward about Total Compensation.”