How total reward statements can help beat ’The Great Resignation’
Have you noticed more employees moving on from your organisation in recent months? If you have, you’re not alone.
Figures suggest a significant upswing in the number of employees seeking new employment opportunities, with a recent survey from recruitment company Randstad UK showing that around one in four employees are looking to change roles.
And with ONS data on job vacancies hitting a record 1.3 million between December 2021 and March 2022, there are plenty of options for those keen for a change.
The causes of this global trend, labelled 'The Great Resignation’ by Dr Anthony Klotz, professor of management at Mays Business School of Texas A&M University, are mainly pandemic related. Over the last couple of years, employees have become used to a different work-life balance, while many have chosen to convert to new careers and others have felt unable to move on – until now.
Employees hold all the cards
Andrew Heath, co-founder at employee engagement survey specialist WeThrive, says: “Given it is now very much a candidate market, employees hold all the cards and feel empowered to vote with their feet, whereas before many would have sat tight and tolerated a poor employee experience.”
For employers, the upshot is that retention levels are suffering, recruitment is becoming more challenging, and – in many cases – productivity is down.
Research by Oxford Economics indicates that it takes recently hired professional workers 28 weeks to reach optimum productivity, pushing the price of replacing an experienced member of staff up to £25,200 per employee.
Companies looking to minimise the impact of “The Great Resignation” will therefore need to double their efforts to boost employee engagement and satisfaction levels.
And we believe dynamic Total Reward Statements are key to achieving this.
Understanding what workers want
When it comes to meeting employee expectations and creating an environment and culture where people want to be, the first step is to work out exactly what your workforce wants. And the easiest way to do this is to ask.
“The pandemic has made most people re-evaluate what is important to them and how they are going to spend their time. In the context of work, culture, purpose and sense of achievement are more important than ever,” Heath says.
Running an employee engagement survey won’t achieve anything by itself, though. Useful change begins when you use the data collected to start addressing the issues raised.
“For a long-term, sustainable answer to retaining people, a thriving culture is the only answer - anything else is a sticking plaster,” Heath says.
“By creating a culture of listening, learning and doing early on in your business, you will save yourself time and considerable stress in the long run.”
Why dynamic Total Reward Statements are the best tonic
Once you have your culture and benefits strategy nailed, it’s also vital to ensure that every individual on the workforce has a clear idea of the true value of their reward package, including not just their salary but their pension and all the other benefits that come with it.
A dynamic Total Reward Statement is the simplest, and arguably the most cost-effective, way of communicating this.
Using a blend of real-time data and timely updates, it allows employees to fully understand all the elements of their package, including emotionally valuable benefits such as company-funded volunteer days.
Comparing apples with apples
So, at the very least, it will ensure that colleagues considering an alternative package with a rival company are comparing apples with apples.
A Total Reward Statement is also the perfect place to outline the organisation’s environmental, social and governance policy, helping to create stronger bonds with employees for whom it is important that their employer shares similar aims and values.
You could, for example, use it to introduce employees to information on ethical investing, as well as giving them the ability to act on this through either a flexible benefits module or a self-service pension platform.
“Constant reinforcement of things that are going well is a great way to build a thriving culture,” Heath says. “Reminding people of what is provided for them as part of their rewards is valuable for this reason; we all have quite short memories.
“Add in some genuine praise, thanks, and recognition and this will definitely help keep those churn levels in check.”
In partnership with Equiniti
Hi we are EQ; some may know us as Equiniti! We provide specialist reward, benefits and payroll solutions.
