Post-pandemic, flexible work arrangements (together with compensation and benefits) form the basis of any comprehensive Total Rewards framework. (Image: Shutterstock)
More than a year after the coronavirus precipitated a seismic shift in where (and how) many employees do their jobs, employers are struggling with what they see as a pivotal question: When we return to the "new normal," what will our policies call for in workplace flexibility – a weekly mix of home versus office, a specified number of home officing days annually, or back to the old ways of no flexibility at all?
It's an all-consuming topic among many business leaders (and, face it, media, too) as trendsetters' decisions are made: Microsoft will allow 50% of its employees to work from home without manager approval. Twitter hasn't changed last year's stance. Its people can work from home forever. Goldman Sachs, though, has called the trend an "aberration," and Google is only allowing 14 days of remote work annually without manager approval.
Joe Torella serves as president of the employee benefits division at HUB International Northeast, a leading insurance brokerage firm, and part of HUB International Limited. A 23-year industry veteran, he is responsible for the overall management of the Employee Benefits operations throughout HUB Northeast's regional offices in New York, New Jersey, Connecticut and Pennsylvania. Recommended For You
But there's a drawback to this sort of tactical response to the coming reintegration – which a significant number of organizations refer to as the "hybrid" model. Instead of policies around how many remote workdays will be allowed, organizations should focus on an expanded, strategic workforce vision. Key is redefining expectations for each role and perhaps even determining how to effectively leverage a virtual-capable workforce for today's competitive environment and tomorrow's ever-changing workforce expectation. The 'War for Talent' is now being fought on a virtual battleground.
The "virtual" component to total rewards
Ashley Thomalla is a senior HR consultant for global employee benefits leader Hub International where she is responsible for developing client programs to attract, compensate and reward employees (total rewards). She was with SilverStone Group, now a HUB International company. The nature of work will never be the same. Nearly 42% of the U.S. workforce was working remotely at 2020's end, and 96% of employees said they'd be happy with remote working in any form, full or partial.
The pandemic did more than change where people work. It changed expectations of employers, challenging them to manage compensation, benefits and training to keep their workforce motivated and happy. It requires that we rethink how to frame and deliver compensation and benefits — the two largest and most tangible elements in a total rewards strategy. Until now. Post-pandemic, flexible work arrangements (together with compensation and benefits) form the basis of any comprehensive Total Rewards framework. But there's more to consider.
One starting point is to stop defining someone's workday according to the walls that surround them. Consider how much of a job can be completed virtually and what your employees expect of a virtual work experience. Then, through broadened virtual sensibilities, consider how a Workforce Without Walls – WWW – might be optimized. In fact, a Total Rewards Program will only be truly effective when bolted to a WWW strategy.
Doing so can turn the concept of total rewards on its head. When employees don't have to live close to a central location, it can have profound effects on compensation and benefits. It changes expectations on pay, benefits and corporate culture. Further, as more employees are untethered to a location for work, the competition for talent, and the associated employee pool will increase, in some cases exponentially. Employers must strategically examine what makes sense and differentiates them in reframing Total Rewards to meet the emerging needs of a Workforce Without Walls.
Think about it:
- Without a water cooler and face-to-face meetings, how do employees connect, how does that influence a culture and how do Total Rewards fill the gap?
- Without the twice-daily commute, do people start working earlier and continue later? That may boost their productivity, but are the old productivity measures adequate for the circumstances – and are the financial incentives properly aligned?
- With a critical focus on meeting DEI objectives in 2021, does a more diverse pool of virtual candidates help address concerns that were more challenging to address 15 months ago?
- And, as the line between work and home continues to blur, the observation that "I don't work at home, I live at work" becomes a more relevant point of concern – is work-life "balance" replaced by work-life "effectiveness"?
The way forward
Employers can fashion a better idea of what employees want and need with expanded census data that includes geography, demographics, title/function, tenure, pay, benefits choices, and more. Analyzing traditional data in an innovative way gives employers a data lake filled with insight to better understand employees' goals, motivations and especially what keeps them up at night. A thorough analysis looks beyond traditional considerations of the "average employee" to also identify the needs of executives/principals and their families.
Ultimately, stepping into your employees' shoes facilitates the reality that "one-size-fits-all" – fits none; further establishing a critical context – that aligning compensation, benefits and culture requires a deeper and more robust dive into individual employee needs and expectations. Applying a persona analysis provides the more expansive and required view of where people are in their work and personal lives.
Persona analysis provides a more individualized view of employees' goals, motivations and needs. The added dimension of remote work lends further insight into how particular individuals deal with change, ultimately impacting an employer's strategic approach to benefits and compensation – and when brought together – a reshaping of Total Rewards.
The persona element
To understand personas, here are two in the broad group of "newly hired" employees, and what the implications for Total Rewards might be:
The "fresh faces": Up to 75% of this group of new hires (25 and younger) are still on their parents' health plans. This group values health care and retirement benefits less than student loan debt relief. Working from home may not show how well they're growing professionally and fitting into the organization's culture. They may benefit from coaching and public recognition of their work achievements.
The "middle stagers": Those in this segment (aged 26 to 34) may be starting on their second or third job. Many are starting families or have young children. This shapes their perspective on benefits, particularly when working at home, and the goal is work-life balance. This distinction is important: the pandemic has skewed the balance between "work" and "life." The challenge is finding the "effective middle". Those caught in-between will benefit from wellness initiatives and employee assistance programs that direct them to the right resources.
Not every "fresh face" or "middle-stage" hire is going to want the same thing. In the examples above the fresh face may be looking for more organizational visibility and the virtual environment may not suit their career objectives – at the same time, the middle stager is, for the first time, experiencing family obligations where a workforce without walls trumps benefits or compensation.
It doesn't mean that some 25-year-olds don't need health insurance or that all 34-year-olds are starting families (and stress over work-life fit). Rather, it underscores the importance of using data and insight to first, understand your employees; and then, to better apply a Total Rewards approach to meet employees where they live, where they work, and what they care about.
Using demographic and employee information to create more granular personas points out the differences. It helps drive insightful decisions leading to a more individualized Total Rewards strategy that improves engagement, attracts and retains talent, and positions organizations for the new normal – a Workplace Without Walls.
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