An integrated compensation and benefits strategy could be key for organizations to retain their top talent, BIPO points out.
As the way we work continues to change and evolve, employees are rethinking their priorities and the type of jobs and careers they want in the future.
Organizations that don’t pay enough attention to employee well-being and don’t provide employees with the ability to choose where and how they work are at risk of an unwelcome talent drain.
Yury Karp, Global Account Manager, BIPO, said, “Many companies and HR professionals are unsure how to deal with the challenges and long-term effects that such a massive exodus of employees will have on business operations. .
He added that as companies grapple with the situation, momentum is building to reassess outdated people and compensation practices. Understanding employee aspirations, performance and engagement is key to sustaining talent development and retention strategies.
Shanghai-based Karp has shed light on a new ‘flat’ movement originating in Shenzhen, which sees Gen Z and Millennials believing in doing the bare minimum at work to get by, instead of work to the bone like their parents did.
For organizations, this Great Employee Reset phenomenon offers the opportunity to re-evaluate and reset business priorities, including improving employee well-being.
While this should encourage employers to find more innovative ways to engage with employees and improve the flexible working experience, there remains one immutable fact that will not change: employees still expect to be compensated fairly for the work they do.
According to Mercer’s COVID-19 Pulse Survey, dissatisfaction with wages and benefits is among the top factors causing employees to quit their jobs in Asia.
Stating this as a “reality check”, Shirman Li, Director of Client Solutions, BIPO, said: “Companies need to react quickly and respond to the changing needs of employees and there is now an urgent need for employers to assess the compensation package. and how to proactively manage the process.
“There is now an urgent need for employers to assess the compensation package and how to proactively manage the process.” – Shirman Li, Director of Client Solutions, BIPO
Create an integrated compensation and benefits strategy
When reassessing their compensation and benefits strategy, open communication and clarity should be high on the thinking of HR and line managers, Li suggested.
“Before embarking on the busiest year-end compensation review process each year, it is important that companies define their compensation strategy from the start and communicate it to employees in a transparent and timely manner” , he added.
To improve this process, companies are increasingly looking for a unified SaaS solution that provides the capabilities to run periodic reviews, benchmark performance ratios, and automated approvals, while integrating with payroll and finance functions. .
An example is BIPO’s Compensation Management module, which enables HR and line managers to forecast HR cost, manage compensation planning, compensation cycles, and approval workflows with oversight centrally, and generate flexible compensation reports.
The module also serves as a platform for organizations to improve the employee experience by communicating more meaningfully with employees.
Quoting the year-end compensation review, Li described, “This is the key time to show employees how line managers recognize their contribution to the company or team and how they plan to reward them. compensate accordingly”.
“As a human resource manager or line manager, besides the actual approved budget amount, communication is also a critical factor. Sometimes it’s not exactly about the amount of the raise the employee receives, but about the message being conveyed to them. The importance of communications is sometimes overlooked, which could lead to unexpected and unsatisfactory results that could be avoided.
By leveraging BIPO’s Compensation Management module, manual processes can be minimized and more time spent improving communications between line managers and employees.
And while there’s no one-size-fits-all approach, organizations that are successful in retaining their top talent are likely those that combine enhanced compensation and incentives with other non-monetary perks.
“There is a real need for companies to deal with the burnout felt by employees and the disconnection of their teams.” – Yury Karp, Global Account Manager, BIPO
Karp echoed, “There is a real need for companies to address the burnout felt by employees and the disconnection of their teams.” However, he added that maintaining a delicate balance while taking a progressive approach to employee well-being, compensation and talent retention is essential in today’s dynamic business landscape.
Agreeing with this assessment, Li said, “Benefits such as well-being and work-life balance are becoming increasingly important. Ultimately, it’s about companies sending the message that they care about their employees not only professionally, but that they also prioritize their physical well-being and mental. In the long term, this is the only sustainable way to retain employees.
As organizations continue to innovate in the design of their compensation and benefits strategy, he reiterated the importance of leveraging tools to manage administrative processes, so that HR and line managers can spend more time communicating with employees.
“Especially for monetary benefits, these should be linked to payroll processes, shown on the pay statement or payslip, and easily accessible to employees. BIPO’s Compensation Management Module allows you to do all of this and more,” Li concluded.
Click here to find out how BIPO’s award-winning global payroll and personnel solutions, including its compensation management module, can help you create a successful compensation and benefits strategy.