COMP NEWS – A CareerArc/Harris Poll conducted in early December suggested that up to 23% of the U.S. workforce is planning to leave their jobs over the next 12 months. This anticipated continuation of the ‘great resignation’ means many organizations will feel the challenge of retaining and attracting talent. Luckily, data, analytics, and agility may help HR managers solve these challenges.
Ken Charman, CEO at uFlexReward, a Unilever spin out, says that technology and data could help human resources stem the tide of the Great Resignation.
Charman suggests that there are two primary types of employees that are resigning for other work.
“First, those that are looking for a lifestyle change, where pay isn’t the primary factor but whether they can travel, spend more time with their family, pursue passions or hobbies, or even reduce the stress levels in their current role,” said Charman. “The second type are those that see this as an opportunity to increase their pay or gain promotion elsewhere.”
Charman says that reward analytics suggests that type one is generally higher income than type two.
Charman indicates that employers should focus on flexible incentive plans that encapsulate more than cash rewards. By adjusting compensation and benefits appropriately, companies may avoid dealing with their own great resignation.
“The dynamic between employer and employee has changed in these examples. Companies can’t just rely on the fact they need a job to pay the bills. Businesses have to respond by offering incentives and models that are relevant to them,” said Charman.
Charman claims this is where the agility of smaller businesses provides an advantage, as they can act quickly on these workforce desires and adjust compensation structures to meet workforce trends.
Charman adds that the main problem is that larger companies aren’t set up to respond in the way they need to.
“They don’t have the data, insight, or the structural agility to offer a new working model or make an informed decision on how much they can realistically pay or safely modify pay without transgressing rules on grades, pay equity, labor agreements, etc.,” said Charman. “The smaller and more dynamic businesses have an advantage here.”
To learn more about how technology and data can help avert The Great Resignation, click here.
For more Comp News, see our recent posts.
Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as deferred cash compensation and multi-factor bonuses.
