Twenty years ago, human resources consultants Roger Herman and Joyce Gioia wrote a book called How to Become an Employer of Choice. The big idea—which is still valid—is that as the labor shortage intensifies, competition for qualified, dedicated employees will become even more challenging.
As we’re already seeing, in a strong economy, employees can choose where they want to work. For employers, it’s important to have workers who are inspired enough by your mission, the culture you’ve created, and the total compensation they receive to choose to stay.
And with the majority of current employees citing mild or extreme financial stress as their primary form of stress, putting together the right benefit mix can make you an employer of choice. That’s because employees who are financially stressed are more than twice as likely to look for another job.
According to Ilyce Glink, syndicated financial columnist and CEO of the award-winning financial wellness platform, Best Money Moves, companies make several crucial mistakes when it comes to compensation, including:
- Failing to communicate the true value of total compensation
- Failing to offer truly competitive pay and benefits
- Failing to rectify pay inequities
- Choosing point-based solutions that don’t really solve the underlying problem
“If you want to be an employer of choice, you’ve got to identify and solve the big-picture problem. Offering benefit bandaids isn’t going to cut it,” Glink adds.
Choosing the right benefit mix and then effectively communicating the financial value of those benefits is the right place to start. “Survey your workforce for specific stressors or use the Stressometer(R) tool inside Best Money Moves to identify specific financial issues your employees face,” Glink notes. You can also take advantage of the new SAP Qualtrics Employee Benefits Optimizer to capture and analyze employee feedback on their benefits package so you can identify the optimal benefits package for your employees and provide an engaging enrollment experience, all while controlling your benefits costs
SAP Qualtrics Benefits Optimizer
Once you understand more about the specific stressors your workforce is facing, you can begin to look at a variety of point-based solutions that can be provided as a benefit, whether that is general financial wellness tools, short-term loans, salary advance tools, infertility assistance or student debt paydown or refinance programs.
Companies can go broke paying for benefits to solve individual problems, and employees find it overwhelming, especially since an estimated 80% never even read their benefits. While it’s true that personalization of compensation is a new workforce trend, a platform that provides context around those solutions, integrates it into your larger employee engagement or human experience management (HXM) platform, and offers personalization through benefit navigation and support is what you should be aiming for.
Once you create the optimal benefit mix, use every means necessary to communicate the value of total comp your employees receive. Understanding the value of their pay and benefits, and making it easier to access those benefits, will go a long way. With SAP SuccessFactors, you can transform your organization into an employer of choice by offering benefits that your employees value.
Watch the on-demand webinar Become an Employer of Choice by Transforming Your Benefits Strategy to find out how you can determine the right mix of benefits and become an employer of choice with the SAP Qualtrics Employee Benefits Optimizer and the SAP U.S. Benefits Administration by Benefitfocus solution.
Tap in the HXM Digital Summit to learn more about SAP SuccessFactors Human Experience Management Suite. Learn more about Best Money Moves and other innovative apps that complement SAP SuccessFactors HXM Suite on SAP App Center.