The new normal has disrupted many things: the way we work, socialisation at work, technology for productivity, performance management, personal responsibility and what we call the overall work culture. It is difficult to know who is at an advantage- employers or employees?
Before the new normal, whenever staff receives their pay, it is common that the items they check for are deduction lines, especially the tax line! Why are we paying this huge tax? How has our pay been structured? Does it assure tax avoidance even while complying with all regulations? Are there smatter ways to structure pay to accommodate the imperatives brought about by the new normal without breaking the law? How can you redesign new normal pay to enable retention and people engagements sustainably?
Compensation might not be the most important factor in determining whether an employee will stay with you or not, but it sure can tip the balance in your favour. Compensation packages usually take into additional cognisance elements asides from salary and wages and include benefits. Even though it is possible to improve what you can offer your employees without spending more money, designing a well-thought-out and crafted compensation package can be vital in ramping up your organisation’s employee retention and engagement indices. The better your compensation package, the more likely you will retain key employees.
According to a 2018 research by Hejratullah Adil et al. published in the Asia Pacific Journal of Multidisciplinary Research journal conducted in the University of Afghanistan, “Compensation plays a significant role in determining the level of job satisfaction of manpower and reward.” Compensation is a valuable tool for employee effectiveness, efficiency, and morale. Moreover, compensation governs the attraction and retention of talented workers to accomplish business goals and objectives.
Our new services at pcl. “Productive Recruitment and Smart Compensation Design” provide clear and implementable answers to the posers above. Working collaboratively with organisations, and with extensive research in executive selection and compensation practices, our team of dedicated professionals are committed to delivering results on these crucial aspects of employee engagement and retention for measurable performance.
It is noteworthy to state that 2021 and beyond will see a tremendous focus on measurable productivity. Equally, reward management will take centre stage in people conversations in organisations.
These are dynamic subjects that require significant insights and constant review of actions. It is important to commence the strategic conversations on time to set and manage the expectations of the employers and employees. You can limit the extent of disruptions that may result from ineffective people selection and pay design practices.
Join other smart organisations who partner with us to develop customised compensation designs to survive and thrive regardless of the pandemic and economic situation. Send us an email (people@phillipscosnluting.net) today.
Written by:
Olawanle Moronkeji
Associate Partner, People Transformation
REFERENCE
Hejratullah Adil, C. V. Kannaji Rao, Mohammad Qasim Ayaz, Aminullah Shinwari, Effect of Compensation Packages on Job Satisfaction and Employees‟ Retention: A Case of Jalalabad-based Private Universities of Afghanistan. Asia Pacific Journal of Multidisciplinary Research Vol. 8 No.2, 26-35 May 2020.