The modern workforce is not as loyal as it once was. Today’s employees change jobs often, always looking for the next opportunity or pay raise. If their current employer can’t compensate them for their value, there are five recruiters contacting them on LinkedIn with better offers. In this world with low unemployment and high turnover, how can employers attract and retain the most valuable talent? We conducted an exclusive study, asking 3,000+ college-educated professionals from the ages of 25 to 65, to find out what motivates today’s workforce. Use these findings to create modern compensation packages that your employees actually want.
Modern Compensation and Performance Practices: What Motivates Today’s Workforce eBook
In 2020, millennials will account for over half of the American workforce. And by 2025, that number rises to 75%. Like all generations, millennials hold different values than the generations that came before them. While older generations crave security, millennials tend to value autonomy and growth over stability. And outdated compensation packages are expected, not applauded by today’s workforce. This is why working from home, unlimited PTO, and office happy hours have increased in popularity.
Fancy perks and office kombucha aside, competitive base pay remains the top motivating factor for today’s workforce under 55. If employees feel they aren’t being paid for the value they bring to the company, they’ll start to look elsewhere. One employee engagement report found that 43% of employees would leave their company for a 10% increase. If you can’t increase base pay, adding non-traditional benefits to your compensation packages can assist employee retention, but aren’t a replacement for competitive base pay.
To retain talent, employers need to tap into what attracts the employees they’re looking for. Nationally, millennials have over $497.6 billion in student loan debt. College debt assistance could entice those that feel the weight of this financial burden. In many industries, work only requires a wifi connection. If remote work is possible for your company, work from home benefits may be a selling point. The trick to creating the right compensation package is understanding who you’re creating it for.
Relying on traditional compensation and performance practices won’t cut it. Employees want to feel valued by their company and compensated for their impact. Download our complimentary eBook to learn more about today’s workforce, their motivations, and how to provide them compensation packages that increase their loyalty and productivity.