The competition for talent is red-hot and it’s only going to heat up. 89% of executives expect competition for talent to increase in 2018. Economic expansion, technological disruption and a multi-generational workforce are challenging organizations ability to find and keep their best people. This is why nearly 60% of employers are planning on revisiting their rewards strategy in the next 6-18 months. A quick review of the landscape shows why.
Though 40% of employees say they are satisfied with their current job, they are still considering leaving. The fourth industrial revolution is reshaping work itself, but only 1/3 of the core skills that will be in demand by 2020 are considered critical today or are being taught by universities. Boomers are staying in the workforce longer than their parents did. Millennials are officially “adulting” with kids and mortgages adding to an already hefty debt-load. Gen X is stuck in the middle trying to take the next step in their career path with college tuition and aging parents on the horizon.
Workplaces are more diverse and motivating factors vary wildly by employee. Salary and traditional benefits still matter, but employees are looking for more than money. They want to work for a company that invests in their wealth, health, well-being and careers. Now more than ever a truly differentiated total rewards strategy is critical.
Finding the right mix of employee rewards is key to remaining competitive in the talent market, especially when only 2 in 5 employees say their company has a compelling employee value proposition. For employers to better differentiate their value, they can expand their rewards strategy to include rewards that connect to the employee experience and sense of purpose.
Employers can enhance the employee experience by including rewards that support an individual’s career and total well-being (financial, emotional and physical). They can also create an emotional connection with employees by adding purpose to the EVP, so that employees can find more significant meaning in the work they do or align with the organization’s larger societal purpose.
Companies that take this broader view of rewards will have a better chance at leveraging the power of a thriving, motivated and productive workforce to drive their success in the future of work.
Mercer Can Help
Mercer can help you create the unique value proposition that makes your organization stand out. We’ll ensure that your contractual elements are competitive, while expanding your definition of rewards. We develop targeted career management programs and incentives based on the unique personas of your diverse workforce. We help you invest in the financial, physical, social and emotional well-being of employees. Communicating with them the way they liked to be communicated the whole way. The end result will be an engaged and active workforce with a sense of pride and purpose. All supported by data analytics that truly link to business outcomes.
To find out more, contact Mercer today.