Introduction
In the present competitive labor market, organizations must work to attract, hire, and keep the best individuals. They must also have a thorough grasp of the benefits and rewards programs that matter most to their employees if they hope to recruit and keep top talent. This necessitates a careful examination of the demands and expectations of both prospective and current workers, as well as the current employment market.
Programs for benefits and rewards are essential instruments for businesses to use in achieving these objectives. This post will discuss two significant perks and incentive schemes that will affect hiring, selection, and retention in 2021–2022. The first will not be monetary, while the second will not be regular pay.
Flexible Employment Arrangements
Flexible employment arrangements are becoming more common as a non-financial benefit that impacts recruitment, selection, and employee retention. In 2021, the Society for Human Resource Management (SHRM) survey ranked flexible work schedules as the number one perk for luring and keeping employees (SHRM, 2022). Compressed workweeks, flexible hours, and telecommuting are just a few examples of flexible work arrangements. They allow workers to balance their personal and professional lives, which can boost engagement, lower stress, and raise job satisfaction (SHRM, 2022). Employers with flexible work options may also experience improved productivity and lower attrition.
According to research by the International Workplace Group, 89% of respondents claimed that productivity has increased due to a variety of work schedules, and 85% said such arrangements had helped them retain top talent (International Workplace Group, 2022). Providing various job possibilities, such as remote employment, adjustable hours, or condensed workweeks, is a crucial benefit affecting recruiting, selection, and retention. Companies that provide these options are more likely to draw in and keep workers who prioritize having a better work-life balance.
Employee Stock Ownership Plans
Employee stock ownership plans (ESOPs), which provide financial benefits that influence hiring, choosing, and retaining employees, are gaining popularity. Retirement plans, known as ESOPs, invest mainly in their employers’ stock. As part of their remuneration package, employees may be given company stock as a bonus or as a percentage of their salary. Employee ownership in the company is made possible by ESOPs, which may boost loyalty and job satisfaction.
According to research by the National Center for Employee Ownership (National Center for Employee Ownership, 2021), companies with ESOPs had turnover rates that were 25% lower than those without them. Employers can gain from ESOPs by boosting productivity, enhancing financial performance, and decreasing turnover. Companies with ESOPs experienced greater rates of revenue growth and job creation than those without them, according to a study by the Employee Ownership Foundation (Employee Ownership Foundation, 2022). ESOPs can be a potent tool for businesses trying to draw and keep top talent, enhance employee engagement, and give employees retirement benefits. ESOPs can align employee and corporate interests and foster a culture of shared success by providing employees with a stake in the business.
Conclusion
In conclusion, benefits and rewards programs are essential for businesses to attract, hire, and retain the finest employees. In 2021/22, flexible work arrangements and employee stock ownership plans are two essential advantages and rewards programs that affect hiring, selection, and retention. In contrast to ESOPs, which give employees a share of the company’s ownership, flexible scheduling options give workers an opportunity to combine their personal and professional lives. Both advantages can increase job satisfaction, loyalty, and productivity, which can also lower turnover rates.
References
Employee Ownership Foundation. (2022). 2022 ESOP annual report. Web.
International Workplace Group. (2022). The future of work: a trends forecast for 2022. Web.
National Center for Employee Ownership. (2021). A detailed overview of employee ownership plan alternatives. Web.
Society for Human Resource Management. (2022). SHRM releases 2022 employee benefits survey. Web.