Retaining Talents Through Tailored Compensation Plans
July 15, 2022
A compensation plan that is flexibly tailored according to individual needs can become the motivation for employees to perform as well as commit to the business.
Lack of benefits understanding drives employee dissatisfaction
Only 15% of employees feel engaged in with the company compensation and benefits, according to Gallup’s State of Global Workplace – an American consulting and analysis company based in Washington D.C. Surrounded by compensation and benefits, the beneficiaries, after all, do not really “enjoy” their benefits.
Thảo Vy (29 years old), working for a technology company in Ho Chi Minh City, had to hide in the bathroom for 10 minutes to calm herself after a long training session about … work-life balance. Vy’s company has been organizing many workshops to take care of employees’ post-pandemic mental health as well as provide re-skill and up-skill training programs “the frequency and compulsion to attend these activities bring me to exhaustion. I understand that these are the company benefit but during the peak season, it really affects the work in progress,” Vy shared.
Many benefits are provided but the lack of flexibility lowers its effectiveness towards employees. “We cannot deny business efforts to provide a balance compensation and benefits package. However, it is important to focus on quality rather than quantity. Constantly adding new benefits but ignoring the quality and lack of understanding will cause burdens not only for businesses but also for employees.” – according to Ms. Nguyễn Thị Thanh Hương, Deputy CEO of Talentnet.
Tailored benefits – the key to retaining talents
According to a study by McKinsey & Company, the needs of workers are changing after Covid-19. Accordingly, 51% of employees hope to have a better work-life balance, 49% appreciate a flexible working environment and 47% increase their interest in well-being.
However, Ms. Hương suggested that the benefits plan cannot depend solely on common trends and needs. Businesses also need to consider employee benefits expectations. “In fact, a flexible benefits plan tailored according to employee needs has brought many values even before the pandemic. It revolves around 3 main key points: Flexibility, priority, and respect“, Ms. Hương advised that these three main keywords can be applied to businesses as follows:
Flexibility according to demands: Employees may have different needs, interests, and desires based on their personal circumstances, and conditions. Furthermore, with the arising uncertainties, employees are prioritizing shorter pay time, and flexible advance so as to cope with challenges in their daily lives. Vui App by Nano Technologies is one of the seamless effective C&B initiatives that enable employees to access earned income portions whenever they need, with automated payroll and 24/7 availability from just 3 taps off the phone.
Prioritize suitability: To avoid the situation of providing unnecessary benefits, businesses can prioritize benefits according to different groups of employees. For example, supporting working parents on Children’s Day or providing flexible benefits for specific groups of employees through digital platforms.
Change the mindset, and respect employee benefits: To prevent a long and uncomfortable company trip, leaders and the HR department can help arrange the time and notify clients in advance so as not to disturb them during the trip. Also, respect from the leader is also an invisible “benefit” that employees hope to receive.
According to HR experts, the tailored benefits plan is a “win-win” strategy that not only motivates employees but also sustains employee engagement. “By maintaining 3 key points: flexibility, priority, and respect, businesses can reach employee needs, bring precious experiences, and increase motivation and engagement instead of surrounding employees with unnecessary compensation and benefits“, Ms. Thanh Hương concluded.