2021 saw workers quitting their jobs at historic rates, a trend that has since been termed by experts as the “Great Resignation”. (1, 2) This trend shows no signs of slowing down, making it more important than ever for companies to focus on their talent management strategies to increase employee retention. So what can employers do to counter the effects of the Great Resignation?
A leading driver of the Great Resignation, cited by employees, is the dissatisfaction with how they are compensated.3 Not only do employees demand fair compensation, but they now also seek greater visibility to understand how they are valued within their company. A strong correlation has been identified between transparent pay packages and higher retention rates.4 In fact, employees who feel their organization is not transparent about pay practices are 183% more likely to look for alternative employment.4 To solve this problem and to encourage talent retention, a company’s compensation platform should paint a clear picture for their employees of how their work is directly linked to the value they receive from the company. For example, a digital compensation statement, like the following from EWM Global’s Total Reward Portal, provides easy-to-understand insights into a participant’s wealth creation with compelling visuals and granular level details.
Providing your workforce with a clear understanding of their total compensation and value drivers can empower them to find meaning in their work and incentivize them to stay. Research has shown that when employees find their work to be meaningful, not only does their performance improve, but they are 75% more committed to their organization and 49% less likely to leave.5
While employee incentive programs are an effective method to attract and retain talent, they can be complex and complicated to administer. Talent management that relies on manual or spreadsheet processes is no longer a viable solution in today’s market. Leveraging technological solutions to automate your processes can help provide the most meaningful experience for your employees while reducing the headaches of administration, such as risk of manual error, key-person dependency, and overcoming the challenges of scalability.
In a Deloitte survey, 67% of executives reported that their companies will focus their future talent strategies on talent operations and technology.6 However, many executives also reported that the best technology solutions have not yet been fully integrated into their talent strategies.5 At EWM Global, we support your company in every phase of compensation from plan implementation to ongoing administration and client support, ensuring your digital transformation goals are successful. Our industry-leading platform can handle a diverse array of plan types and administration, enabling our clients to achieve powerful process efficiencies.
For more than two decades, we have executed on our mission to replace outmoded administrative tasks and mitigate the risks and inefficiencies associated with incentive plan administration, helping our clients retain and reward their greatest asset – their people.