This post is the third post in a series running throughout 2022 taking a deep dive into the new era work. This post is all about compensation & benefits and how it links to employee satisfaction and productivity. You can catch up on the previous posts here and here.
Let’s dispel the biggest myth about compensation & benefits straight off the bat – providing highly sought after benefits does not have to be about high wages and expensive benefits such as private medical cover.
When it comes to looking at compensation & benefits you want to drive attraction & retention, and to ensure there is alignment with the vision your organisation has of itself as an employer.
New generations armed with a social conscience, a need for connectivity and a demand for wellbeing, are well entrenched in the job market. Old school ethos are breaking down in favour of more collaborative models that prioritise recognition and team work. Outside the workplace, the cost of living is rising and a large chunk of our workforce are finding themselves financially vulnerable.
Trends observed from the Australian Benefits Review (ABR) indicate that organisations are moving away from offering one-size-fits-all benefits; that is, offering all employees a suite of benefits whether they use them or not. In place of this, organisations are moving towards a collaborative-based model, where different benefits are offered, unique to the individual. These are tailored to the employee’s needs relating to wellbeing, lifestyle and career.
Employee Benefits
Wellbeing – Physical, Mental & Financial
People & Culture Departments can pump out some pretty amazing initiatives to inspire and engage employees. But if employees are not empowered to manage their health and wellbeing then only so much can be achieved
Wellbeing differs from person to person, and we know that what is happening away from work impacts work if the employee isn’t equipped with the tools and resources to address issues as they arise
So it makes sense to look at employees as whole beings doesn’t it? To make your employee benefits a human deal, not just a financial deal
Employee wellbeing impacts the resiliency of your workforce. Employees with higher wellbeing have lower levels of burnout, diagnosed anxiety and depression.
Of employees experiencing burnout at work:
– 63% more likely to take a sick day
– 2.6x as likely to be actively seeking a different job
– 13% less confident in their performance
Wellbeing programs that reduce the stigma of having open & honest conversations about mental wellbeing; coaching managers on providing support; and empowering employees to identifying wellbeing initiatives that matter the most to them, will increase engagement, productivity and your ability to attract and retain quality employees.
Flexibility
1 in 2 employees Australia wide say flexible work hours and arrangements would reduce stress (particularly around family responsibilities). Other big ticket items in this category are increased paid time off, increased superannuation contributions, work from home policy, access to wellbeing and mental health programs, income protection insurance
59% of organisations in Australia reported that they were reinventing flexibility as a core part of transforming the employee experience. The most common form of flexible work arrangements were flexible start / finish times, compressed work weeks and remote working (work from anywhere).
Flexibility is multi-dimensional and no longer simply means ‘working from home’. It’s about where work is done, as well as when and by whom.
It’s an understanding that one size doesn’t fit all, that the key to a happy, healthy workforce is about doing the right work, at the right amount, at the right pace and the right time, in the right location.
The most common forms of flexible work arrangements include ongoing flexitime (such as early start/finish or longer lunch breaks), offered by more than 80% of the market, as well as part-time arrangements. Over the past five years, increasing numbers of organisations are allowing employees access to compressed work weeks (such as working 38 hours a week over four days instead of five).
Recognition
Say thank you, celebrate win’s in the moment, call out good behaviour not just the bad, put on morning tea or lunch to show your appreciation.
The few moments you take from your day to do the above can mean so much to employees.
We will have a lot to unpack in the coming months, so if you don’t already, follow us on our socials here and here, navigate back to our blog roll and sign up for newsletters, or, follow me on Linkedin for regular education posts just like this.
It’s time for HR to move beyond policies, practices and processes, HR’s value proposition to business is to ensure HR professionals and their practices’ produce positive outcomes for key stakeholders, employees, line managers, customers and investors.
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