While RIFs are a CFO’s best friend (bell curve – we know some outliers), layoffs have other costs…how do we motivate the remaining employees who genuinely have to “do more with less”? To start, we know people want more than a paycheck, but they also *definitely* want to know they are being paid fairly – so the “what have you done for me lately” is true for both total compensation (is it updated and fair?) and in non-cash ways that are truly valuable to them. What are the ways leaders can widen the aperture? Let’s explore.
The Paycheck Isn’t Everything (Yet Please Make Sure it’s 2024-2025 Proof)
So what will “total rewards” look like in mid-2024? A well-designed rewards package will go far beyond just base salary and benefits.
Topping the employee wish list are: career and skill development opportunities, flexibility and work-life blend (per always), and enhanced health benefits that address not just medical care but overall well-being.
Speaking of well-being, community at work is a powerful “extra” that we’ll be looking at next month. This month, we’ve compiled some strategies based on our direct experience of what’s happening in the workplace.
Strategy 1: Tweak Compensation Programs
We’ve seen a spike in requests for compensation and benefits consultants, and now a third of our consultants deployed are working on these priorities. Some clients suspect their compensation programs need tweaking, but need some co-ideation in terms of where to begin. Our interim experts are jumping in to review, update, or validate (sometimes the data does support zero changes needed – and helpful to have data behind any flat compensation decisions).
Do you know how well aligned your comp is with the external market after all the recent changes? And is your data internally consistent after layoffs and any restructuring? It’s basic, and yet essential.
Strategy 2: Communication is Key – Making the “Why” Clear
Other clients know their programs are in line with the market, but they can see the communication side is missing. It’s like spending hours preparing a gourmet meal, only to serve it as a jumbled casserole on a flimsy Styrofoam plate with a plastic fork.
In a culture where compensation/capitalism drives the electric, space-bound bus, let’s just say most employees could be categorized as “picky eaters” (or my favorite euphemism of ‘foodie’).
Excellent communication is essential for ensuring employees understand the “why” behind your programs. One way our interim consultants assist is in developing effective communication strategies for your whole, deliciously designed smorgasbord! This might involve:
- Crafting Compelling Messaging: Tailoring communication to resonate with different employee demographics. One size often fits none. Similar to the customer/product experience, we want to tailor communication to personas and not treat them as one mass market.
- Utilizing Multiple Channels: Leveraging internal communication platforms, town halls, and one-on-one meetings to get the message across in a variety of ways that employees can digest them.
- Interactive Resources: Developing online resources and FAQs to empower employees (and first time managers who may need more upskilling) with easy-to-understand information.
And just in case you need data to influence others…transparency also matters to the bottom line in a big way. For example, According to PayScale’s 2023 Retention report, pay transparency decreases intent to quit by 30%. Given most organizations have cut any excess staff, we want to see high numbers of intent to STAY.
This could be especially important in the tech industry, whose 3% average salary increase, not a stunning stat to begin with, lagged the national average of 3.6%.
Strategy 3: Career Laddering for Modern Tech Teams
Compare how the two scenarios feel to everyone involved: A is the status quo, where your employees are just working for a paycheck, and B is a vibrant organization where they are actively building their careers and contributing to your org in their highest capacity.
A well-designed career laddering program is one tool for moving from A to B.
Examples include:
- Career Pathing: Clearly defining career progression opportunities within specific roles and departments.
- Job Architecture: Mapping out the skills and competencies needed for different positions within the organization.
- Skills and Competency Matrices: Identifying the skills employees need to develop to advance their careers.
Many companies, particularly those experiencing growth, need more resources to develop and implement robust career laddering programs. This is where interim consultants specializing in compensation and benefits can be a game-changer. For example, we helped a client leverage GenAI and provide their people leaders with a tool to build customized learning journeys for their direct reports (which we’ve shared before, but we know we need reminding of important things). The results were impressive. People leaders saw an eye-opening 60% reduction in time spent on career planning, freeing up their energy for more impactful activities like mentoring.
Our interim consultants can help you review and update existing programs and validate their effectiveness. They can also analyze data to see if your career paths are actually leading to employee retention and advancement. We know we’re biased, but this kind of bias is the “help me help you” 
Strategy 4: Change from the Inside Out – Restructuring the Comp Team
Given all the changes in the past year or two, the correct structure of your compensation team, and their pay, might need its own review (it’s always interesting to look at comp for comp!). For example, given that compensation roles are highly paid, one route is to consider merging analytics and operations into one position – especially if you’ve done some downsizing.
One real world watch out: The try before you buy has pros in getting critical work done and trying out the company culture…one area it has challenges is for companies who want dynamic leaders as comp consultants tend to be more execution based (not true for all, don’t worry you dynamic consultants who are the outliers – we see you).
Is this an area piquing your interest? Or did we just make you hungry for better food?
Q3 is right in front of us. Are you feeling overwhelmed by the task of crafting a compelling, well-metabolized HR compensation strategy?
Forshay can be your “extra pair of hands” during these critical periods. Our team of interim consultants can provide the expertise and support you need to navigate the complexities of modern HR/PeopleOps.
But even before that, we can simply help you figure out where to start. Reach out to decompress over coffee today. We’re here for you!
