The evolving workplace: How to keep compensation offerings in line with expectations

The workplace has shifted immensely in 2021, with the U.S. forced to grapple with a historic labor shortage. Employees have grown used to their home offices and virtual team meetings. And perhaps most striking, employers saw employees gain the upper hand and voice their desires for better compensation and benefits packages in this candidate’s market.

Employees’ needs have continued to evolve over the course of the pandemic. As a result, if employers want to hire and retain workers during this labor shortage, they need to further consider employees’ expectations. To unpack what employees are looking for going into 2022, beqom conducted an Employee Expectations in Hiring Report, to dig deeper around these expectations, and how employers will need to adjust.

For employers struggling to decide where to focus their compensation efforts, they don’t need to look far, because employees have spent the last year making sure their wants and needs are clear. Let’s take a look at what employees are seeking from their current and new positions in the year ahead.

Employees are seeking increased compensation amid labor shortages

Employees have become increasingly aware of their value and the skills they bring to the table, causing many to expect to make a higher salary in their next position. Employers must be ready to offer competitive market rate salaries if they hope to attract and retain employees, especially since nearly two-thirds (64%) of Americans prioritize pay as the most important factor when considering a job offer and nearly two-thirds (63%) of Americans say they are aware of the current industry benchmark pay for their desired role.

Additionally, as the Great Resignation has become apparent in almost every industry in America, employees are noticing colleagues leave for high salaries, better benefits or other appeals that make the grass look greener. But when employees see a colleague pack up their desk, oftentimes employers are struggling to replace them due to labor shortages, creating more work, without increased pay. Over time this will continue to drive employees to companies that make them feel more supported and valued, if employers don’t equalize workloads or pay.

Flexible benefits offerings are as valuable as pay

Aside from compensation, employees are craving flexibility in their scheduling and want to work on their own time. More than two-thirds of Americans would accept a lower salary if it meant having flexible working hours (77%), remote work options (71%), and a higher number of PTO days (70%), according to beqom’s survey.

But flexibility is more than scheduling. The ability to get to work more easily and care for loved ones, for example, also helps their personal lives blend more smoothly with their professional lives. In their next role, employees are seeking benefits that promote a strong sense of work-life balance, including paid parental leave (67%), commuter benefits (66%) and childcare stipends (52%).

Build a greater sense of trust by establishing pay transparency

Pay transparency can help establish trust and value for employees by encouraging openness rather than secrecy around pay.

When employers are transparent about how pay decisions are made, employees can better understand their earnings in comparison to others within their organization. For example, if two employees in the same role are comparing salaries, but one has more years of experience than the other, they will likely be different due to tenure. Pay transparency shows an organization wants to be open with their employees and is willing to work with them if they share concerns. This openness pays off from a talent acquisition standpoint, as three in five (60%) Americans say salary transparency at every level of the organization is very important in their next role.

Large employers like Apple and Amazon have already begun making strides towards building pay transparency by listing salary ranges in job postings. As more companies begin to prioritize pay transparency, others are sure to follow in those footsteps. Considering more than one in four (27%) Americans believe employers should provide pay transparency in job postings, and six in ten (61%) are more likely to apply to a job that shares a salary in the job posting, transparency is becoming a competitive advantage for companies across industries.

No two employees are alike. Some may want to see a large spike in compensation, while others are content with new soft benefits options. The bottom line is employees want to feel valued by their employers and will stay loyal to employers they feel are trustworthy and transparent. When employers pay close attention to the needs of their own workforce, they can make actionable changes that will improve both retention and attraction during this difficult labor market.

Tanya Jansen is chief marketing officer at beqom.