Should inflation drive your salary increases?
External incentives – such as bonuses – have limited effects on long-term employee motivation and, in some cases, can undermine their desire to stay.
Here are 5 actions to reduce the impact of inflation:
1. Assess your salary and benefits data
- Use real time data, because it helps organizations to react to employee’s needs.
- Vary compensation options. This works more for smaller organizations. You can add some benefits such as health insurance increase, transport allowance, discount vouchers etc.
2. Develop a communication plan to promote transparency
- veryone should feel appreciated, valued, informed and heard. Communication is the key to success! Leaders should communicate with employees regularly.
- The last few years have changed a lot in the working culture. Workforce became more emotional and stressed. So: Show empathy!
3. Review compensation processes while ensuring fairness
- Identify weak spots e.g. gender bias in pay or salary inequity in similar roles.
- Conduct salary reviews – despite good or bad economic times.
- Develop comprehensive anti-bias training for managers and leaders.
4. Supply educational materials for more equality among the workforce
- Entrust managers to have honest conversations.
- Have a transparent structure of your organization, so the employees know in case of questions whom to ask.
- Offer some external resources such as workshops. This support can contribute to the continuity of fairness and unbiased approaches within the workplace.
5. Enhance employee wellbeing by offering personalized support
- Listen to your employees, e.g. make anonymous surveys. This approach allows employees to express their thoughts and come up with ideas to improve.
- Support in case of mental health issues.
In conclusion, organizations with transparent policy and workforce-friendly environments can maintain a clearer oversight on budget and hence, retention.
Do you need guidance and/or support in brainstorming and implementation benefit and incentive measures in our company? Then contact us to find your HR partner to cope with this challenge.
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