Post by Pallavi..

Pallavi said...

With the retirement of baby boomers, shifting attitudes of younger workers and increasing dominance of women in the workforce - coupled with the potential labor shortage - companies today face escalating demands to better attract, retain and develop high-potential and high-performing talent.

Compensation alone will not retain and attract top talent. The emerging strategy is a combination of benefits including compensation, benefits, performance and recognition incentives, work-life and career development opportunities.

Because benefits help support the corporate business strategy and create the desired culture, it’s critical for companies to define a total benefits philosophy that articulates the objectives and priorities for each of the benefit components. An effective total benefits program includes a variety of monetary and non-monetary recognition programs. The key emerging practices that companies adopt fall into the areas of retirement benefits and performance management.

Five years ago, broad-based equity compensation — like stock options — was widely used, but with the stock option expensing rules, companies have been limiting their use. However, for executive levels, non qualified deferred compensation plans and supplemental executive retirement plans (SERP) are often used to reward executives for the long-term success of the company or as a retention vehicle. As companies are looking for ways to develop their internal talent, some are adding formal career planning, while some are considering adding competency-based performance management and the use of multi-rater feedback.

The one-size-fits-all approach is no longer applicable in the development of benefit programs. With the multi generational workforce, companies need to design benefit programs that retain and motivate a diverse employee population. For example, the present generation wants to feel empowered to challenge thinking and express their own ideas. They thrive on change, value entrepreneurialism and are independent, multi-taskers. So what can companies offer to retain and motivate them?

• Provide more flexibility in work hours, compensation, benefits and attire

• Establish formal career paths• Reward for learning new skills or competencies

• Provide multi-rater performance feedback

Companies conduct various surveys in which they take a feedback from the employees on the various policies in place. These are the surveys, which frankly speaking, most of the employees do not genuinely fill in and reflect their ideas in. These surveys serve as the ground for framing policies in the organization. The HR , based on these surveys, comes up with new initiatives. Company Survey responses indicate the following incentives to be most effective in retaining employees:

• Cash bonuses

• Supplemental benefits such as dental insurance or a pharmaceutical plan

• Flex time

• Long-term incentives

Understanding the workforce and the current trends in benefit programs can lead to better communication, improved recruiting and recognition programs and increased retention of satisfied employees.

August 12, 2008 8:52 AM