It has been said that the “3 C’s” of Compensation are communication, communication, communication.
While it appears as though the Great Resignation has hit its peak, the US Bureau of Labor Statistics reported 4.2 million leavers in May 2022. Additionally, we are still in a situation where we have in the US over 11 million jobs and only 5.9 million available workers. Such a shortage is making filling jobs very difficult, expensive and time consuming.
With 4.2 million employees still quitting their jobs, it begs the question as to what it is that employees are actually looking for in this job market. A recent Grant Thornton State of Work in America Study revealed that 80% of employees are looking for flexibility in where and when they work. The report further states that 51% are not actively looking but would consider a switch if one arose, and 29% are actively looking. Let’s do the math, 80% of your employees would answer the phone or email should it appear.
While management is often cited as the top reason the employees leave jobs, a March 2022 report from the Pew Research Center report (1) suggests that employee’s number one reason for leaving in the first place is pay. A March 2022 McKinsey Report (2) does site uncaring managers and unacceptable work performance expectations as the top two reasons in their study, with inadequate total compensation package coming in further down the list.
At no point in my 40 plus years as a Reward practitioner, have I ever had an employee walk into my office and tell me that they are overpaid. We are all underpaid and underappreciated! But are we? How many employees understand exactly what their total rewards package is worth?
How many of us are actually communicating the full value of the employee’s reward package to an employee? Does an employee realize the investment their current employer is making in them via salary, variable compensation, benefits, equity, pension, wellness etc. When presented with a job offer from a prospective new employer, for an employee to be able to access their current total rewards value to compare against would be a great tool to potentially retain an employee.
I started the post with the assertion that “communication, communication, communication” are the 3 C’s of Compensation. Let’s start that communication!