A wave of workers is expected to seek greener pastures in the coming year, spurring what some are calling a “Turnover Tsunami.” Americans who feel more comfortable with the direction of the economy amid the continuing pandemic seek career advancement, improved work-life balance, and hybrid or remote work options. Many have used COVID-enforced downtime to gain skills that can lead to new career opportunities.
Before they accept that new job offer, however, they’ll be looking closely at their potential employer’s total compensation.
What Total Compensation Includes
The Balance Careers defines compensation as “the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. Essentially, it’s a combination of the value of your pay, vacation, bonuses, health insurance, and any other perk you may receive, such as free lunches, free events, and parking.”
According to the 2021 Jobvite Job Seeker Nation Report, a company’s compensation package can make or break a job offer.
What Compensation Means to Workers
JobVite found that the largest group of those surveyed – 38% of job seekers – deemed total compensation the most important consideration when weighing a job offer. This outstripped other benefits, including office location and commute (34%), company values and culture (29%), job security (26%), work-life balance (24%), COVID safety measures (23%), healthcare, and other benefits (22%), and quality of work (21%).
Employers are Paying Attention
With that in mind, companies are realizing that the salaries and benefits they offer must be comparable to – or exceed – compensation offered by their competitors, to keep current talent and entice quality job candidates.
In fact, PayScale’s 2021 Compensation Best Practices Report discovered a revealing shift in employers’ views toward compensation packages over the past 18 months. PayScale reported that 75.6% of organizations currently have or are working on a compensation strategy. Furthermore, 65.3% of organizations say changing their compensation strategy is an essential goal in the next 12-18 months.
Employers should keep in mind that the most desired benefits can vary by age group. Older workers may prefer a higher salary, while younger workers may place more value on flexible hours, childcare options, or tuition reimbursement. Consequently, competitive organizations are likely to consider adding a broad range of new benefits in the coming months.
Having a well-rounded total compensation package clearly helps seal the deal with quality job candidates. However, a solid compensation strategy is also a good business strategy, motivating workers and encouraging staff retention.
For help finding your next top employees, contact the recruitment experts at Pro Resources Staffing Services.