Most employers would likely be thrilled if they never heard the term “The Great Resignation” again. And it’s no wonder. From one perspective, it has cost them not only employees, but also resources, time, and a great deal of money.
While there are some very real negative effects of this shift in the workplace, there are also some equally real opportunities for employers. The Great Resignation has changed how employees view many aspects of their jobs and other options, including their job offers and compensation. This is a positive thing!
The Great Resignation has shifted the hiring paradigm by giving employees an enormous amount of leverage over employers — to the tune of 10.4 million job openings this past fall. And as we may recall from Economics 101, it’s all about supply and demand. The number of well-paying jobs right now is far outnumbering the number of unemployed, increasing confidence among employees and improving bargaining positions. With this leverage in their back pockets, employees have the freedom to explore what’s out there. And you now have the freedom to show them … in a competitive offer.
Many employers are focusing exclusively on the reasons employees are leaving. But there is much more to the narrative. Namely, what are employers doing about it? The Great Resignation is not merely a fight over remote work, as much as the arguments circulate that this shift is about no longer wanting to work in an office or deal with a commute. For many employees, their mindsets have shifted due to the larger effects of the pandemic. It’s affecting how they view their jobs, family time, flexibility, their own inherent value, and how they are appreciated. Many have deeper concerns about the meaning of what they’re doing, asking themselves why they’re putting so much into their careers and wondering if their employers truly value them.
Attracting candidates and retaining employees isn’t just about scheduling and remote work. It’s about showing employees they are valued, the company cares about them, and their work has meaning. It’s about providing clarity in the midst of so much that is unclear, with transparent goals and increasing opportunities for education and growth. After so much uncertainty in their personal and professional lives, candidates and employees are longing for something certain. Something that is clear and expected. Something on which they can count. And one area that is often unnecessarily fraught with uncertainty is compensation structures, including offers made.
It’s time to look at the Great Resignation as an opportunity to reimagine your compensation structure. Doing so begins with a competitive offer that is about much more than offering the highest salary. During these unique times, “competitive” isn’t merely about dollar signs. Rather, a “competitive” offer needs to reflect the salary, equity, benefits, and perks that add up to the employee’s total compensation. Just as importantly, the total compensation in a competitive offer needs to be easily understood.
In this overly saturated job market, a well-developed and clearly communicated compensation structure is a strong competitive advantage. It’s clear that candidates have higher expectations. According to an article in Harvard Business Review, “Candidates are increasingly selective about whom they work for, so firms need a compelling ‘employment value proposition,’ which might involve anything from competitive compensation and benefits to career-development opportunities and a reputation for stellar management.”
The key is making your offer and compensation structure an essential piece of the overall candidate/employee experience to meet those expectations from the outset. And at the foundation of any redefined compensation structure is one constant: transparency. Transparency in compensation structures means educating candidates on the total value of your offer, so they can better understand that it goes far beyond the dollar signs of the salary. Why? An offer is only truly competitive if the candidate understands why and how it is so.
A transparent competitive offer and compensation structure can be your most strategic advantages in attracting candidates and retaining employees. When candidates fully understand the total value of their compensation, fulfilling a need they may not even know they have, you have differentiated yourself, your company, and your offer from others. Who knows—with these new opportunities, maybe employers won’t mind hearing about the Great Resignation, after all.
Download this guide to learn more about how a transparent compensation structure and offer can help you say goodbye to the Great Resignation and hello to top talent.
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