Compensation Management for the MultiGenerational Workforce

 -  1/31/07

More than one-fifth of workers in nine major industries said they were "not very satisfied" or "not at all satisfied" with their compensation and benefits packages.

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Creating Conditions for Successful Change

Have your change leaders done their up-front work? Have they removed the weeds, tilled the soil and added the necessary fertilizer to grow your change efforts successfully?

According to Hudson’s “2005 Compensation and Benefits Report”, more than one-fifth of workers in each of the nine major industries assessed said they were “not very satisfied” or “not at all satisfied” with their present compensation and benefits packages. What’s more, 58 percent of employees surveyed reported they would consider leaving their employer for higher pay. This probably does not surprise too many people, or at least it shouldn’t. Money continues to burn holes in the pockets of U.S. employees, and it is therefore a primary factor in determining whether a candidate will accept or decline a position.

Thus, one of the key questions in the war for talent will be: What options exist for organizations that can’t offer the highest pay to key personnel? Broadly speaking, the HR department needs to sell the total compensation package. Existing and future employees must understand absolutely everything a company has to offer.

As companies recruit top talent, they need to emphasize different things to different people. These items might ultimately make or break a deal with a prospective hire:

• Pay.
• Benefits.
• Training.
• Career development and personal growth.
• Paid time off.
• Work-life balance.

HR departments need to tailor compensation plans in order to successfully sell candidates on their companies. Organizations that take a closer look at what each employee really wants out of a job and can figure out how to make the candidate select or stay with the company will be effective recruiters, which will have a positive impact on their profitability.

Talkin’ ‘Bout Your Generation

Over the years, various kinds of social scientists have tried to shape age-based coteries called “generations” based on large-scale political, economic and cultural trends experienced during their formative years. The conventional wisdom is that the three primary generations in the workforce now break down as follows:

• Baby boomers (born between 1946 and 1964) are viewed as loyal and hardworking and also somewhat narcissistic. They’re expected to stay late and do whatever it takes to get the job done. They’re also concerned about their job titles: They want to know how to climb the corporate ladder and appreciate being recognized for their knowledge, loyalty and performance with promotions and more money.

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