27 Jul Can Total Compensation Help You Overcome Disengagement?
If you’ve followed any of our previous blog posts, you may be familiar with some of the advantages we frequently discuss about communicating total compensation to your employees. Using tools like compensation software to relay important messages about how you’re rewarding your teams can give them a clear idea of your employee value proposition. But is it enough to overcome today’s widespread employee disengagement problem?
A recent post from HR Technologist confirms employee engagement levels dropped across the globe from 2015 to 2016, from 65% to 63%. It’s not a tremendous spike in disengagement, but when we consider that the findings mean 37% of workers are disengaged, it’s certainly cause for concern.
Back to our question above: can a strategic, all-encompassing approach to compensation help? Most likely. While there are many definitions of engagement, many professionals agree that at the most basic level, it refers to an employee’s willingness to contribute to the success of an organization.
Interestingly, Harvard Business Review recently published a study which revealed that employees perceive increases in pay as a positive tradeoff for contributing towards the success of their organization – the very definition of employee engagement. Thus, when your employees have a clear line of sight into how they can be rewarded for their contributions, it will intrinsically impact their likelihood to continue to stay engaged.
Of course, salary alone likely isn’t enough to consistently support long-term employee engagement. Managers and executives realize that employees also need things like ongoing feedback, a healthy work/life balance, and a rewards program that alleviates the burden of worrying about healthcare costs and retirement planning.
That’s why more and more organizations are taking a broader approach to compensation by enhancing their communications and giving the employees the tools they need to see and understand the many ways in which they’re being rewarded. In turn, they’ll feel more valued, and may thus be more likely to stay engaged in their work.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Compensation Management Software, COMPview, click the button below!