Not only has the pandemic changed where, when, and how people want to work, but it has also changed why they want to work and what they value in their occupations.
Prior to the epidemic, companies' emphasis on employee well-being and inclusion was primarily regarded as a bonus. All of that changed with COVID-19, as people began to expect more from their jobs than the standard 9-to-5 grind.
The value proposition for employees has evolved. Employers must do more to stand out and establish a compelling employer brand. Furthermore, long-term incentives have lost a lot of their appeal. Instead, a greater focus is placed on flexibility, employee support, and establishing a sense of purpose.
Employers must also consider how they will provide inclusive benefits, holistic employee wellness, and mental health support, which may necessitate rethinking and reworking their compensation systems.
Pay for remote workers (whether location-based or not, as Google's recent move demonstrates), raising basic compensation to attract talent (e.g., Target, Bank of America), and sign-on bonuses are just a few examples.
Inclusionary benefits are an important component of a company's overall DEI&B strategy. They are especially concerned with the concerns of underrepresented populations, which many organisations have yet to address.
Examples of inclusive benefits include:
1. Ensuring there are no disparities for race and ethnicity in health care plans.
2. Selecting healthcare providers on their culturally and linguistically appropriate care.
3. Choosing solutions that address social determinants of health to ensure equitable outcomes.
4. Depending on how equitable an organization’s benefits are, we distinguish between three levels:
Level 1 - A reactive organization that does not consider inclusive benefits to be important and does not offer any.
Level 2 - A proactive organization that recognizes the need for inclusive benefits and is ready to address this need.
Level 3 - An equitable organization that has introduced inclusive benefits and reviews them on a regular basis.
However, the most significant change to how HR manages rewards will come from the fact that organizations will increasingly remunerate employees based on their skills rather than on their job title or previous experience.
Creating smart, impactful rewards is thus one of the most important HR trends for the coming year, and it will remain on every CHRO's mind in 2022.