HR leaders urged to 'anticipate' trends to develop forward-thinking measures
Developing compensation strategies can be a challenge for organisations in the wake of overlapping trends that are shaping the world of work.
In its latest white paper, Frontier Software advised HR professionals to "anticipate these trends to develop forward-thinking compensation strategies."
One major trend raised in the report is pay transparency, where employees are increasingly seeking information about pay structures, job grading, and salary bands.
"While full transparency may not be feasible for all organisations, implementing clear communication strategies about compensation philosophies can enhance employee trust and engagement," the report stated.
The rise of the gig economy and flexible work arrangements is another workplace trend that's been recently shaking up workplaces, particularly traditional employment relationships.
The report noted that this trend necessitates a "flexible approach to compensation, including hourly rates, project-based pay, and independent contractor arrangements."
"HR professionals must develop strategies to attract and retain gig workers while ensuring fair compensation for all employees," the report said.
Employee wellbeing, sustainability on the rise
The increased prioritisation of employee wellbeing and sustainability is also highlighted in the report.
Compensation strategies should reflect the greater prioritisation of wellbeing in the workforce, according to the paper.
This means offering "comprehensive benefits that support physical, mental, and financial health," it said. Among the measures HR professionals can implement are:
- Flexible work arrangements
- Mental health support programmes
- Financial wellness initiatives
In terms of sustainability, the report suggested incorporating environmental and social considerations into compensation packages to help attract and retain "socially conscious employees."
"This might involve offering incentives for sustainable behaviours, investing in green initiatives, or supporting social causes," the report added.
Overall, Australian organisations are challenged by various external factors, such as economic conditions, that can influence wage growth. Read more about Frontier's white paper to find out how to face them.
