How Compensation and Benefits in HRM Helps In Employee Retention
Employee retention involves strategic actions to keep employees motivated, focused and engaged resulting in higher productivity and the overall well-being of both the employees and the organization. A comprehensive employee retention strategy plays a vital role in attracting and retaining key employees, reducing turnover and its related costs, and further job satisfaction. It is becoming increasingly necessary to work on the same during the pandemic since employees are facing uncertainty in the job market, and are struggling to maintain a balance between work and personal life and maybe facing financial constraints as well. Here are 5 ways in which the employees can be alleviated from such a predicament by including these compensations and benefits in HRM:
1) Compensation and Rewards
Monetary compensation can be an effective strategy for employee retention but we realize how that might be an issue during pandemic times. Here are other ways to consistently reward your employees to keep them motivated and engaged. You can reward hard-working employees with:
1.Off days or a short vacation
2.Providing discounted coupons of top-rated restaurants, hotels or other luxurious
3.Allowing for greater flexibility in work-hours
4.Providing free online courses to upgrade their professional skills
2) Introducing ESOP
Effective talent management in HRM allows for employees to become integral members of the organization and encourages them to stay. Another way to go about it would be introducing Employee Stock Ownership Plan, where an employee gets the benefit of acquiring the shares of the company at the nominal rate which later he can sell and make a profit but only after a defined tenure set by the employer. Companies offer ESOPs not only to retain employees but also make them stakeholders of their company. It is used as a tool to attract and retain the top talent.
3) Empowering Employee Mental Health
Introducing an ‘Employee Assistance Program’ which aims to empower the team’s complete well-being is an effective strategy for employee retention. It’s not just a benefit but it also reflects that an organization cares for their employees as it the program includes counselling sessions, advice by healthcare professionals, training and workshops to advocate support to every employee, etc.
4) Well-Rounded Benefits
Apart from taking care of your employees’ mental health, your organization can also include well-rounded benefits dedicated to medical and dental insurance, life insurance, childcare benefits, relocation assistance, and others. Such policies incentivize employees to invest their time and effort in the tasks assigned to them; resulting in a more fulfilling experience for all parties.
5) Consistent Recognition & Feedback
Effective recognition, appreciation, and provision of feedback for the performance of the employees not only motivates them but also carves the path for having meaningful dialogues and discussions. Here are ways in which recognition can be offered to the employees:
1.Giving them visibility by praising them appropriately and ensuring that management takes note
2.Providing the top-performers with mentors
3.Giving them more managerial responsibility which presents itself as a sign of trust and a ground for developing a healthy professional relationship between employee and employer.
