Earlier today, Glassdoor released the list of the Top 25 Companies for Compensation and Benefits, and if you’re not one of those companies, you might have compensation on the brain.
Gold watches and pensions are SO industrial revolution. The go-tos as bonuses or compensation for a job well done have changed right along with the workforce. And compensation and benefits must change as well. As the compensation structure changes, workers are requesting benefits from companies that add value to their lives. More importantly, workers are looking towards companies are rich in opportunity, not just rich in stocks. What does the future hold for compensation?
Incentivizing the Workforce
The workplace is changing and compensation has to catch up. In an interview with TimesJobs.com, Shubha Kasivisweswaran, the HR Director at SunGard said, “In the years ahead, as organizations become more agile and flexible, compensation and reward structures will follow suit.” Employees want incentives more than compensation. The growing workforce is much more invested in motivation through other means like bonus plans (that reward your hardest workers) and work hours that take advantage of that most overlooked skills-gap filler, stay at home moms.
Satisfied employees are not solely stimulated with money. As employees grow out of traditional compensation, what is the next step? Clearly incentives. They promote a higher level of productivity in employees and deepen company culture. Employers have to discover an incentive plan that works best for their company.
Short-term incentives reward drive, productivity, and behaviors that have an impact on the company’s bottom line. Private companies showed a rise in short-term incentive plans in 2013. Thirty-nine percent of these companies reported their organization has four or more short-term incentive plans to pay employees and not without reason. Incentives encourage teamwork and collaboration by weakening silos in addition to rewarding success. In order for short-term incentive plans to be effective, rewards must:
· Relate directly to performance
· Be measured on all aspects of job responsibilities
· Are easily measurable
· And finally, they must be significant enough to the worker.
Flexibility is Key
Today’s workforce wants less dictatorial work edicts and just a little more flexibility. That’s why you see progressive employers offering balance focused compensation like company sponsored sabbaticals, job sharing arrangements and productivity focused hours. These aren’t just to please the fawning millennials, rather company leadership are realizing that employee burnout is their issue too! Smaller companies are leading the pack in offering flexible environments and with the changing healthcare and benefits environment, larger corporations should look closely at how they can compensate their staff.
“Technological advances and demographic shifts in the workforce are changing where, when and how work gets done,” said Lisa Horn, director of congressional affairs at SHRM.
This article was originally published on Glassdoor for Employers.