Tips To Modernize Your Employee Benefits
Today’s fast changing market requires an agile approach to employee benefits. But have you reviewed your total rewards package lately? Over time, your organization’s people strategy, as well as your current and future workforce have likely evolved. You might still be investing in benefits and programs that are no longer valuable to your employees, or perhaps never were valued considering the differing priorities of Millennials and Gen Z.
Given their ever-changing needs and expectations—particularly with how much has changed in the past few years—you might not have the right total rewards offerings for your employees and your organization.
In a confusing twist of fate, some companies are choosing to layoff employees and find ways to cut costs. This is due to the technology industry experiencing a unique labor market within the overall economy, as they face the tension between a hyper competitive talent market and the reality of a potential economic downturn. In Indiana, the numbers tell the story—as the state currently has a 7.3% job openings rate with only a 2.2% unemployment rate. However, broader external market factors including inflation, rising interest rates and recession fears have caused a wave of tech companies that were aggressively hiring to announce layoffs in recent weeks.
In light of these curious and somewhat contradictory market conditions, where should you focus now? Here are three key total rewards trends to consider for your company.
Employee Compensation Trends
The pandemic has made flexible and remote work arrangements more realistic quicker than most of us ever dreamed possible. But, as we consider a more holistic strategy around remote work, you may be asking, “How do I pay a distributed workforce? How should I approach my employee compensation strategy?”
Take a close look at your compensation philosophy and practices around geographic and remote work pay, and create a flexible, future-focused strategy. Here are three key approaches to determining pay for your distributed workforce:
- By employer location or national rate
- By employee location
- Remote work differential
Creating a More Inclusive Workforce
Not only do diverse and inclusive teams have better business outcomes, expanding your talent pool and total rewards package to better support underrepresented populations can help fill open positions and gaps in your succession plan. “Degree inflation” is when jobs require a degree (often a four-year college degree) as a baseline qualifying credential for a job interview, but it is actually not needed for the job. To create more equitable and inclusive workforces, employers are turning to more skill-based hiring and programs such as apprenticeships and externships to fill staffing needs. At the same time, this approach is most successful when paired with robust talent development programs, such as learning and development opportunities, mentoring and coaching. These pathways can not only bolster success with new hires, but continue employee development throughout their career journey.
Employee Benefits Trends
Employers are strategically expanding their benefits strategies to include an emphasis on four key areas:
- Mental well-being
- Recruiting and retaining executives teams
- Employee lifestyle perks
- Workplace culture and connection