Rewards are seen as a key strategy for businesses looking to win the war on talent.
Research by EY finds that 79 percent of employees are putting a premium on pay and other tangible benefits. The vast majority of employers (83 percent) now believe significant changes to rewards policies are required as a result of the pandemic.
It’s one thing to offer excellent rewards; it’s another to allow employees to personalize them. That’s why publicizing this feature of your reward platform is so important. In doing so, you’ll attract top talent in three ways.
Employees Prefer Regular Compensation Reviews
Remuneration remains a major factor when hiring and retaining talent.
The EY 2022 Work Reimagined Survey finds that “42% of employees say pay increases are needed to address staff turnover.” Additionally, more than one-third of employees who are looking for new jobs report that a higher salary is their main objective.
Even if you can’t increase salary levels, you can use your company’s rewards personalization policies to attract workers. That’s because personalized reward platforms allow employees to review compensation and benefits throughout the year — and that frequency is something workers care deeply about.
In its 2018 CFO Insights, Deloitte finds that employees favor compensation packages that provide rewards more often than the yearly standard. They cite a study by Globoforce that found employees who receive small, regular rewards, such as money or points, are eight times more engaged than those who get increases once a year.
While one in five companies give employees regular performance ratings, just 9 percent adjust salaries at the same rate.
Jobseekers Want Personalized Training
A lack of career development opportunities is a major source of job dissatisfaction.
“Surveys have concluded that one of the main reasons employees leave their jobs is a lack of career growth and development opportunities,” says Sam Caucci, founder and CEO at coaching and development platform 1Huddle.
“The modern employee wants to feel continuous growth in their skillset. If you aren’t doing that then odds are you have a high turnover rate and you are wasting a lot of money.”
Caucci cites a 2021 Monster Job Index that found nearly one-half of employees “expect their employers to support and aid their professional development.”
The problem is that most training and development programs aren’t user-centric, says Margaret Rogers, managing vice president at consulting firm Pariveda Solutions.
“While training is often necessary when teaching people new skills, it’s only the first step toward a more distant end,” Rogers writes. “In my experience, the most impactful development happens not through formal programs, but smaller moments that occur within the workplace: on-the-job learning opportunities that are wholeheartedly catered to the worker’s unique needs and challenges.”
Showcasing your ability to personalize training and development opportunities is a big draw — not just for employees who want to progress in their careers, but for job seekers who understand there is more nuance to training than standardized courses.
The benefits continue once candidates are on your payroll, says Grainne Shaughnessy, global GTM lead at business software provider Sage. She cites research by the Association for Talent Development, which finds employees are 218 percent more productive when offered “comprehensive training programs.”
The key is to train employees in ways that allow them to “develop their careers in non-linear ways,” Shaughnessy explains. “It could even involve training them in other aspects of the company’s work, so that they could make a sideways move should they wish to.”
You Prove You Cater to a Diverse Audience
It’s not enough for employers to offer benefits like healthcare, vision, and dental insurance, says the team at HR Daily Advisor. “In order to attract and retain top talent, they must supplement these offerings with personalized benefits packages that meet the diversified needs of the modern employee.”
Diversity is crucial. By highlighting that you personalize benefits, you prove that your company can meet the changing needs of a diverse workforce.
Mercer’s Guy Vachon and Julia Velasquez also recommend employers redesign their benefits packages to better meet the needs of a more diversified workforce. “In the past, flexible plans were centered on different life stages, but real personalization is far more comprehensive,” they write.
“HR and risk teams should also look at benefits through the lens of vulnerable populations and consider personal circumstances, such as values, life goals and family responsibilities, to be inclusive.”
Personalized rewards also allow employers to meet the different needs of each generation and retain talent at every level of experience across the organization. Personalization is essential because some benefits aren’t necessary for everyone in your company, says Roger Fairhead, group reward director at Legal & General.
“For example, a 25-year-old single individual with a dependant – parent or child – will likely have vastly different financial and emotional needs to a 45-year-old couple with a dependant.”
Rewards personalization is a major draw for job seekers. Prove your personalization proficiency and you’ll attract top talent.