Rewards and benefits have been a savior for businesses looking to attract and retain top talent in the wake of the pandemic.
But that could be changing, says Jen Colletta, managing editor at Human Resource Executive. With the possibility of a recession looming and a rise in layoffs, a reward system that was once at the heart of a company’s retention strategies could start to look different.
Given that the economic landscape can change at a moment’s notice, having up-to-the-minute data is key for businesses that need to make informed decisions. Real-time reward dashboards are the answer in terms of compensation and rewards. They give employees immediate access to important financial information while empowering businesses to meet the demands of today’s rapidly changing employee landscape in the following ways.
Demonstrate Employee Value During Times of Uncertainty
The great resignation is not over. Rising living costs and the threat of a recession may cause more employees to rethink their positions and look for more lucrative opportunities.
A recent survey by Workable found that 70.7 percent of U.S. workers were either actively or passively looking for work. Of those, 63.4 percent said salary, perks and benefits are the main reason they were looking for work and 62.2 percent said those three issues are the top factor when deciding whether to accept an offer.
Businesses need to prove to employees they are getting fair compensation. Real-time reward dashboards that employees can access any time can be invaluable. By showing employees the total financial value of their reward package, it makes it easier for them to see the full value of their current role compared to the potential compensation of a new one.
Help Employees Overcome Economic Stress
An uncertain economic environment can cause employees of all income levels financial distress. A 2018 survey by the Financial Health Network found that 68 percent of workers with a household income of less than $60,000 and 52 percent of workers with a household income in excess of $100,000 were stressed about their finances. Worse still, that stress impacts their ability to work. Over three-quarters (78 percent) of employees with high financial stress said it distracts them.
What’s more, the vast majority of employees (84 percent) think employers should be more involved with helping them overcome financial challenges, according to the State of the Workplace Financial Benefits Study from Morgan Stanley at Work.
Organizations can use real-time reward dashboards to meet employee expectations and alleviate some financial stress. Employees can better understand the full value of the rewards available to them — including any financial help.
Moreover, organizations can also use these dashboards to allow employees to rebalance their rewards in a more financially beneficial and reassuring manner. One common solution is to slightly increase base salary while reducing bonus pay.
Quickly Create New and Competitive Reward Packages
Organizations don’t just need to retain staff in this current climate, they need to attract new talent. Research by ManpowerGroup shows that almost half (48 percent) are planning to hire in the fourth quarter of 2022.
Reward packages still play a key role in attracting the best talent. A survey by Workhuman finds that 81 percent of employers are offering signing bonuses, with 65 percent saying they are also offering retention bonuses to existing workers. Between 30 percent and 40 percent of employers are considering tweaking budgets to allow for higher salaries.
With real-time reward dashboards, employers can quickly create competitive rewards packages by comparing and copying the packages of existing employees at similar levels. At the same time, they can use real-time analytics to understand how the compensation of those new hires would impact existing budgets and, further, the impact of providing additional bonuses to existing employees.
Use Real-Time Information to Make Data-Backed Decisions
In addition to remuneration decisions for new employees, employers can also use real-time dashboards to weigh the relative merits of alternative employment options.
“Many employers have increased the use of temporary or part-time workers to supplement their workforce during periods when it might not be prudent to hire full-time staff,” writes the team at Fisher Phillips. “Other employers have taken a page from the book of gig economy businesses and turned to independent contractors for gig-like assignments.”
Employers can use dashboards to forecast the impact of hiring a contingency team compared to full-time employees. Real-time reward dashboards show the total cost of each reward, the rewards employees value most, and the financial impact of reducing one or more rewards.
It’s not just about cost cutting, though. Real-time data can also be used by HR to fight for additional budget and resources. With the prospect of belt-tightening on the horizon, Ben Brooks, founder and CEO of career development platform PILOT, says it’s vital that HR pushes back against cuts. “Saying ‘no’ to cuts from HR is a savvy opening move in any budget exercise. It is a boundary, it shows that you need to be taken seriously and it lowers expectations that much savings will come from HR.”
Your refusal will be all the more powerful if you can use real-time reward dashboards to show the potential impact such budget cuts will have.