Updating your compensation and benefits plans is a good place to start.
Sponsored by Newcleus Compensation Advisors
In a recent podcast with psychologist and author Adam Grant, billionaire, entrepreneur and TV personality Mark Cuban proclaimed Gen Z “the greatest generation.”
“They take all the ingredients into account when they’re making decisions,” Cuban said, asserting that those born between 1997 and 2010 highlight work-life balance in their personal and professional lives and put a premium on emotional and mental health equilibrium.
The pandemic also had a significant impact on workers’ priorities, regardless of age. Since March 2020, the importance of personal and family values and responsibilities has been elevated. So has the value of flexible work and companies’ community engagement.
To stay competitive in the hiring market and to better retain staff, employers have had to re-evaluate how they can use their compensation and benefits offerings to fulfill the needs of a multigenerational workforce.
Has your organization and compensation committee recognized the need to keep up? Updated compensation and benefit plans are increasingly more important to your organization as the demand for workers at all levels of business has spiked.
The 2022 compensation survey sponsored by Newcleus Compensation Advisors found that intensifying competition for talent puts pay and benefits front and center. When asked about the specific challenges their organizations face in attracting and retaining talent, bankers and directors point to an insufficient number of qualified candidates (76%), rising wages in their markets (68%) and rising pay for key positions (43%).
“There are a few ways to control or reduce related expenses, but the real key is making sure you are efficient with your compensation dollars and that you address the expectations of new employees,” said Flynt Gallagher, president of Newcleus Compensation Advisors. “Some examples include offering payments to meet student loan obligations, providing 401(k) plan management education and reducing administrative costs. For executives, implementing a cost-effective lifetime SERP (supplemental executive retirement plan) may be the answer to retaining key people.”
Gallagher said the survey findings highlight the struggle credit unions face in competing with diverse industries for talent, addressing mutigenerational values and employment expectations, and responding to the pressure of increasing compensation costs.
What Matters Most
The bottom line? It’s important to identify the most valuable and productive employees already on the team and make sure their compensation and benefits reflect their value and what’s important to them.
For millennials and Gen Z, job security is less important. Networking and skill-building provide the stability they are looking for. This can be offered through training in support of career development, trading managing for coaching and by ensuring work/life balance. In all, you’re building a place where employees want to show up.
To stand up to hiring competition, the message is clear: Your credit union must adapt its culture and compensation policies to the needs and desires across the generations and keep the pipeline of talent flowing.
Carolynn Hondo Fedor is a communication strategist, content coach and freelance writer.