| Get rid of your out-dated reward packages,
tailor-made benefits are the key to retention. |
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| Employers are finding their workers turned off by the benefits on offer, as they don’t match their changing needs and modern lifestyles. According to a recent survey Generation Y workers are not just satisfied with high salaries, preferring a better work-life balance. |
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| But for the employers who are struggling in the war for talent, the need to tailor reward and recognition is evident to meet the needs of different generations instead of a ‘one-size fits all’ approach. The research found that despite 40% of employers citing attraction and retention of key talent increasingly difficult, 60% still do not match their benefits package with workers’ requirements. |
| Amid fears that we are entering an economic downturn, many workers are worried that their jobs are in jeopardy. In addition, they fear that their pay and benefits packages will also be affected. According to research, it is not the benefits that need improving but rather communication from HR. Studies suggest that employees have lower expectations about their job prospects and related benefits than the HR professionals who serve them. One in three employees expects a cut in their benefits package, but over 95% of employers have no plans to do this, and 45% are planning to enhance benefits this year. The benefits most valued by employees are holidays (93%) and pensions (73%). |
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Employees are no longer primarily motivated by financial rewards, as workers are more willing to put in extra discretionary effort to help their organisation succeed if they believe their company is investing in them and their skills. In terms of employee engagement drivers, the second most important is the degree to which staff feel that they have improved their skills and capabilities over the past year – this ranked far higher than financial rewards. |
