By Stacy Litteral, Managing Director, Advisory
We all work for a paycheck. We may love what we do and derive an immense amount of satisfaction from doing it well, but employees seek to be compensated fairly for their skills and hard work. That said, employers who see pay as the main motivator for keeping their team members happy are missing the big picture. Compensation is an important consideration, but it is not the only thing people care about. If organizations want to win in the recruitment and retention arena today, they need to think creatively and strategically.
The Recruiting Landscape
Salary does matter, and it is the primary reason why people do not accept job offers or switch jobs mid-career. In fact, a recent study shows that nearly 60 percent of employees make their decisions based on pay. That is why it is so important for hiring managers to be cognizant of industry standards for compensation – they may miss out on amazing talent because they are paying below market rate. But that is only the tip of the iceberg, especially when it comes to Gen Z and millennial employees and recruits.
The job market right now is incredibly competitive, which is causing salaries to rise. That is a good sign for employees, who find themselves in the driver’s seat for the first time in years. Not only does that give them bargaining power when it comes to pay, it also lets them choose to work for organizations that offer a culture where they feel they can thrive.
According to Ashley V. Whillans at Harvard Business School, “More than 80 percent of American employees say they do not feel recognized or rewarded, despite the fact that U.S. companies are spending more than a fifth of their budgets on wages. What employees crave even more is to feel that their managers appreciate them and aren’t afraid to show it – not only in paycheck terms, but in other ways, such as flexible work-at-home schedules, gift cards for pulling off impressive projects, or even just by saying ‘thank you’ for a job well done.”
Some managers may bristle at what they perceive as a “touchy-feely” approach, but they don’t really have a choice. That’s because millennials (those currently aged between 25 and 40) right now compose about half of the workforce – a figure that will rise to 75% by 2025. In fact, millennials are probably the most important demographic in the United States since the baby boomers because of their sheer numbers. Organizations that dismiss millennials do so at their own peril.
Give Them a Purpose
Savvy employers who know how important the under-40 demographic is need to motivate these individuals beyond just a job and a paycheck: They need to give them purpose. Younger workers need to feel valued in what they do, and also that they are creating value. Millennials want to be inspired and to feel like they belong. This means working for companies that have objectives and values they can connect with on an individual level. It also means that every employee needs to be connected to the strategic direction of the organization, rather than simply being cogs in the wheel.
So how can organizations do this? After all, it’s one thing to create systems around “hard metrics,” but HR departments are now being asked to measure such amorphous factors as “satisfaction” and “happiness.” This is where the right employee performance management software, such as BPM Link, can become a power tool for helping organizations transform how they think about building and retaining great teams.
BPM Link is a modern, progressive employee performance management (or, as we prefer to call it, performance alignment) tool that allows companies to create innovative, multifaceted approaches to motivating and rewarding their employees. For example, instead of relying on the annual review to gauge success, BPM Link leverages automation and an employee-driven paradigm to enable continuous feedback between managers and employees, allowing them to better align their performance with team and organizational outcomes. Differing from other employee evaluation software and performance review platforms, this feedback loop keeps everyone engaged and allows companies to provide the kind of ongoing professional development and feedback that millennials value. It also allows everyone – regardless of title, level or experience – to feel connected to the organization and experience a sense of control over their own professional destinies.
Management, too, benefits in the form of more frequent feedback about employee satisfaction – insights that can help optimize the company’s recruitment and retention strategies. Perhaps most importantly, BPM Link connects employees with the values and mission of the organization, which is a major factor in keeping employees from sending out their resumes.
Enhance Your Talent Recruitment and Retention Strategy with BPM Link
There is no magic bullet that is going to help business leaders retain their team members. There are myriad factors in play, and without a strong compensation program, organizations are always going to find themselves at the bottom of the list of preferred employers. But by offering a higher level of engagement that goes beyond paychecks and perks, companies can greatly increase their chances of retaining team members while, at the same time, achieving new levels of success. And the right employee performance management software makes all that a lot easier.
To learn about how BPM Link can help drive your organizational objectives, visit the BPM Link page on our website, or contact Stacy Litteral, Managing Director in our Advisory practice, today.