PART 1: THE TRUTHS
The rising cost of daily products is a real concern for everyone. And with the highest inflation rate in more than 40 years, workers are expecting bigger pay raises. Vietnam is also facing difficulties despite a lower level of inflation rate than that of many other countries in the world. If pay raise is not on the task list, what are your options?
Money is important but still can't makes employees engage with their organization
Employers began to discuss more solutions to maintain employee satisfaction such as improving compensation policy, applying flexible working schedules, working remotely, and considering services such as Earned Wage Access, Rewards, and Recognition Platform,..teambuilding activities, personal care programs, etc.. To choose the right strategy, let's take a look at the facts:
1. Although up to 64% of employees take a good income to be an important factor when looking for a job, the first reason why they leave is related to the managers. This is a consistent insight from decades of Gallup data and interviews with 25 million employees.
2. The next lesson we learn from the data related to the Great Resignation is that employee retention correlates strongly to employee engagement:
(GALLUP, Sept 2019, March 2021)
And not only to the employee retention rate, but employee engagement is also an important factor affecting work productivity and business outcomes. What makes employees engage with their organization? Salary? Money is important but not the answer. A job with attractive salary may make them consider taking it, but doesn’t make them enthusiastic to work. Official salary bonus results when the company secures and encourages achievements and prioritized behaviors. Building employee compensation is not easy work and should be aligned with financial and talent management strategies. Expanding the picture of the working environment beyond compensation, the pandemic has changed the way people work and perceive work. They think more about a quality job, one that makes them feel purposeful, inspired and motivated to work, and to stay. This is a challenge to the leaders.
3. After the pandemic, the requirement for a flexible working environment becomes another important factor for employees. People at Work 2022: A Global Workforce View report says up to two-thirds (64%) of surveyed workers would consider another job if an employer asked to work full-time in the office. Many companies have made the permanent transition to hybrid working environment and have received positive responds. Apply this strategy required a right level of automation, self-leadership skills, understand members' unique working styles and apply appropriate management approaches.
(To be continued)
Blanchard Vietnam
