3 Compensation Strategies in a Changing World of Work
The world of work is changing – dramatically and quickly, which means new strategies for compensation. The advent and advancement of the ‘gig economy,’ where contractors and consultants work on specific projects for specific time frames, advances in technology which allow for more flexibility, and the younger generations wanting less rigidity in how they work, have forced a rethinking of the way work gets done and employee compensation is structured.
Recession Changes Employer-Employee Dynamic
Recovering from the recession meant that a lot of employers cautiously staffed and were less inclined to employ workers as they previously did. The same downturn also encouraged many people to rethink traditional employment in terms of being their own brand, working on a project basis, and being less susceptible to losing a job should there be layoffs.
Shift Your Thinking Starting with Compensation
Continuously evolving technology, co-working spaces and new employer mind-sets, have supported and are a result of these changes taking place in the way work gets done. Younger workers are also demanding flexibility and choice around when and how they work. Look for ways to build in flexibility with the way you compensate and you will open your company to new skills and work arrangements that may have significant impact on innovation, cost-reductions, process improvements and time to market.
Given all of the above, here are three principles that should guide employer compensation strategies today:
Think in terms of paying for the work, instead of paying for the role.
Increase use of variable pay plans.
Provide more options and more flexibility with respect to total rewards.
Company culture that recognizes this new world of work is required of employers who want to attract and retain the best employees.
Need Help with Your Compensation Planning?
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