A hot topic of conversation right now is how pay and reward impact employee outcomes. How most business leaders think about employees and workforces has had to change beyond all recognition in the last two years.
The COVID-19 pandemic has changed how many workforces operate. With daily media headlines covering ‘the great resignation’, ‘the culture of an organisation’ and the importance of mental health and wellbeing, many businesses have taken the opportunity to re-evaluate their flexible working practices. The pandemic has changed people’s expectations when it comes to the “work/life balance” and hybrid working policies are becoming popular in industries where possible. Businesses have also re-evaluated the usage of premises – which could have led to downsizing, reconfiguring existing space or looking for better quality space – and for many, spend on technology has typically increased to support remote working and improve productivity.
Another feature of recent years has been the growing awareness of Diversity and Inclusion and as a key aspect of the workforce. Many businesses are already reporting on gender pay gaps. Businesses must understand that they will have to demonstrate a proactive approach to improving the diversity of their workforce and how they are promoting equality and inclusion.
As the economy emerges from pandemic, recruiting and retaining people with the right skills to deliver on business strategies has become increasingly difficult and expensive. The “great resignation” has affected many businesses and the increasing emphasis on wellbeing and job satisfaction means that offering people the right mix of pay, rewards and benefits has become more complicated.
Finally, there is no part of any business that is not having to consider Environmental, Social and Governance issues; the ESG agenda. How businesses address this in the context of their workforce will only become more important over the coming years. Governments as well as stakeholders such as employees, clients, customers, investors, and shareholders will all expect every business to articulate how it is contributing. Employees are driving the ESG agenda too, with more consideration being paid to things like green finance, investing, and pensions.
Your pay and reward levers for improving employee outcomes
There are some common tools that most businesses will have at their disposal as they seek to build and/or maintain the workforce they need. Each lever will have distinct cost implications and will impact employees and the whole workforce in different ways.
A Framework for improving employee satisfaction, retention and wellbeing
It is against this backdrop that CEOs, CFOs, and Heads of People/HR are having to rethink how they use monetary and non-monetary levers to build and maintain a workforce that can sustainably deliver growth and success. They are having to consider the most effective and cost-efficient ways to address employee wellbeing and satisfaction, improve diversity and inclusion and address ESG.
This post was written by BDO LLP. They are an exhibitor on the Payroll Time & Attendance floor of the HRTech247 Technology Hall here.
