Attracting new talents into organizations is getting more complex than ever before due to several factors such as high inflation, tight labor market, lack of experienced and skilled labor, etc. Not only is attracting new candidates becoming a challenge, but also retaining the existing employees, and keeping them happy and motivated is getting more demanding. Organizations are developing new strategies to build a more sustainable talent pool and one of the most enforced strategies is compensation increases.
However, due to higher inflation rates in today’s economy, offering higher compensation or increased salary packages throughout all departments is not necessarily be successful and sustainable as expected. Sure, it can offer short-term benefits. But is that enough to sustain in current demanding and competitive market environments?
Companies around the globe need to implement new tools and strategies to attract, retain, and develop people.
A better compensation or a higher salary hike can be a great motivator
HR leaders and management go on board with the idea of offering increased compensation to attract new talents and retain existing employees. However, it has not proven to be the best tool to resolve the issue of higher turnover.
In recent years, with the onset of the COVID-19 pandemic, people started looking for enhanced financial security by shifting to another job role or company, seeking better opportunities. More than 60% of global employees who changed their jobs stated that salary compensation was the major reason. Due to this reason, companies began planning to offer increased basic salaries and starting wages, improved health benefits and bonuses, etc. But did that resolve the higher turnover issue? Unfortunately, no.
Continuous compensation increases can’t be the only strategy to implement a stronger talent pool
Even the largest organizations have budget constraints and cannot seemingly increase compensations and other monetary benefits to appeal to the demographics.
Today’s labor market is overwhelmed with employees who want to be offered unorthodox job benefits. An untapped tool is to offer benefits that reach beyond compensation increases. Employees are looking closely for broader perks such as education, and professional and personal care, and this untapped talent tool can help employers attract all employee demographics, especially millennials.
Employees and prospective candidates are seeking help from employers
For the past 5 years, people’s needs for a better lifestyle and job satisfaction have drastically evolved. From basic health insurance and retirement savings to social security, paid vacations, and employee allowances, we have grown tremendously. This also indicates that there is still a lot of room for improvement.
Current challenges in professional and personal lives have resulted in a totally imbalanced proportion of employees. Pressing corporate issues such as lack of parental care leads both the parents, especially women to leave the organization, take a longer break, and lose their motivation to work ever again.
Final thoughts
A lot of professional support and flexibility from the organizations can bring an immense difference in people’s lives. Understanding that there are no such rules to stay monolithic and only follow the decades-old talent strategies is the beginning of creating a stronger talent pool. Look out for education and care benefits as they help create better opportunities for the community, improving everyone’s personal and professional lives.
