While we are reaching the mid-mark of 2020, let’s review how compensation management will play as important a role as ever in attracting and retaining the best talent for your organization. This includes not only offering competitive pay, but also providing the total rewards options that your workforce wants and expects. While it’s important to always make compensation decisions that align with your company’s specific needs and strategy, it’s also helpful to analyze the market to understand how your organization pays compared to competitors.
Navigating Stagnant Merit Increase Budgets
According to Mercer’s 2019/2020 U.S. Compensation Planning Survey, most organizations plan to keep their merit increase budgets the same through 2020. Just over a fifth of companies are increasing their budgets in the new year, according to the poll. In lieu of bigger payouts, many employers are offering their workforce better programs in terms of employee well-being and career development.
Accommodating Multiple Generations
The multigenerational workforce which we’ve seen emerging in recent years is here to stay, at least for 2020. Many organizations have a rich blend of age groups, including Baby Boomers, Gen Xers, and Millennials. Each of these groups tends to have different priorities; for instance, while generations which are more advanced in their careers may be focused on retirement plans, younger workers could be more interested in career development. Including a broad range of offerings in your total rewards program will continue to be important to meeting the needs and expectations of these groups through the coming years.
Developing Learning & Development Opportunities
Compensation goes far beyond salary alone. Many of today’s workers are also interested in how their organizations can help them further their careers. From offering attendance to conferences to providing tuition reimbursement or mentorship programs, there are many ways your organization can cultivate employee development. Not only can this boost morale and engagement, but it may also foster a deeper commitment among your workforce.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.