The labour market is regularly changing and we are seeing reports of increased intentions for employees to change jobs and careers. This means that businesses need to be prepared for the next wave of employee mobility. Post pandemic, how businesses reward their people will be vital in the retention of key talent.
People have put off finding a new role during the pandemic lockdowns, however, in a recent survey, People Management report the increased intentions to move job, with a quarter of people planning on finding a new job over the coming 3-6 months. The report stated that the most important factor to job loyalty is money linked. It is therefore vital that business leadership are retaining their talent in the business to drive performance. To do this they should be reviewing the business’ Total Rewards Strategy.
Total Reward strategies
A Total Reward Strategy is the design and implementation of reward policies and practices that support the business and people objectives
A well planned strategy will ensure that people are rewarded:
- in line with the organisation goals and values
- for the value that they create
- support business performance.
Businesses should consider the external market and what other companies might pay for a similar skilled employee. If there is a skills shortage or a demand in a specific skill (both of which we have seen this year with ‘HGV drivers’), you may find your key talent are enticed away by competitors offering better rewards. It is therefore important to consider the external factors – this may also enable you to be competitive during your recruitment and when upskilling your current talent.
Total rewards not only covers compensation, but also the wider benefits offered including other recognition methods to support increased engagement:
- Holiday entitlement and time off
- Structured development programmes to supporting career development
- Health and wellbeing
- Flexible working
- Remote working (increasing your talent pool as this is not specific to your location)
The above covers just a few areas you could consider.
People are less likely to look for a new job if they feel connected, valued and engaged in their current company, which is where you can use your rewards strategies to build on this engagement.
As part of the strategy review, also be aware that candidates will look at the culture and environment of the business. Glassdoor report that over 3 quarters of candidates look at the company culture before applying. Another consideration to factor in, above salaries.
What you can do to develop your rewards strategies?
- Review your current salary and benefits
- Undertake regular external salary and benefits benchmarking
- Carry out an Employee survey to better understand what your people value
- Review existing HR policies, terms, conditions and benefits including: holiday entitlement, health benefits, wellbeing
- Train your Line Managers to embed the Total Rewards practices
- Seek expert HR advice where appropriate on the above projects.
For more information and to explore how to implement a Total Rewards Strategy please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.