Only 37% of companies think their compensation packages take into account several generations in the workforce. 37% isn’t close to a passing grade. It’s time for a revolution.
Anyone who has been in the workforce since the start of 2020 knows the value of flexibility in the workspace. “Business as usual” won't fly anymore and companies that don’t adapt won’t survive. The slowdown created by the pandemic gave employees the opportunity to ask themselves what really matters to them (personally and professionally) and consider how their job fits into that picture. If it was a square peg they were trying to smash into a round hole, it was abandoned in search of a better fit.
Three years later and things aren’t all that different. Gallup’s latest state of the workforce report shows that the majority of employees are “quiet quitting” and over half of employees are job seeking. Employers need to listen to what their employees want and need (read: focus on getting them engaged) if they are to avoid the time-consuming and costly problem of attrition.
Employee engagement is vital to attracting and keeping top talent. And flexible compensation can have an extremely positive impact on employee engagement (dare we say revolutionary).
Consider some example engagement tactics to help meet the needs of employees across generations:
- As part of the recruitment process, a top applicant could be offered a cash signing bonus that vests over time. They have immediate access to the cash and their employer has peace of mind knowing they are less likely to quit within six months.
- Instead of sticking with a standard bonus plan or equity package, an employer engages their employees in a new way by allowing them the option to select how their compensation is packaged. Some may stick with the standard, opting for mostly equity like stock options or RSUs. Others may want to pay down debt or purchase a home and would appreciate the choice to take a smaller equity package in favor of an upfront cash bonus that vests over time. In both instances, employees were asked what they needed and wanted and then given the chance to have exactly that.
- To incentivize employees to hit a big milestone, their company could offer upfront cash bonuses tied to performance goals that vest over time. They already have the cash in hand, but as the individual employee or team hits the established goals, they are rewarded by a reduction in the vesting schedule.
Each example above shows meaningful, personal engagement that will generate long-lasting goodwill between employee and employer and therefore increase retention rates. Keep’s mission is to create long-term relationships between employers and their employees by offering flexible compensation solutions to increase both retention and engagement. Schedule a demo to learn how our flexible compensation solutions could revolutionize your workplace.