The Canadian workforce is becoming increasingly diverse as organizations look to previously untapped sources to meet the labour shortage challenge. As a result, many workers are demanding an employment deal that offers flexibility, allowing them to select the workplace options that best suit them.
In these circumstances, the question for employers is accordingly perhaps less whether to introduce flexibility into the employment deal and more one of degree. Over the years, the definition of “flexibility” has expanded from simply providing choice over benefit purchases(e.g., optional medical/dental/life insurance coverage)or work arrangements(e.g., time off, working from home)to offering a total rewards package, where-using an integrated, holistic approach-cash and benefits are delivered according to individual employee preferences and working conditions are customized.
Increasing diversity may bring a demand for even more flexibility. Pushing flexibility to the extreme results in the ultimate in choice-a plan where employees are able to customize every aspect of the employment deal. This arrangement includes flexibility with regard to benefits, compensation, hours, work site, training, and so on.
Before reviewing employee rewards to allow for increased flexibility, organizations may first want to work through the following five-step analysis and planning process. The end result will be a rewards program that balances what employees want, understand and appreciate with what the employer is willing and able to provide.
1. Build a platform for change: understand your talent challenge
• Consider the types of employees the business will need in order to meet its objectives, both now and in the future(project number of expected retirees and skills lost, assess learning and development needs, etc.)
• Learn what the value sets(views on work environment and culture, quality of work/life, pay/benefits, etc.)of your current and future workforce look like(through surveys of current and prospective employees, etc.)
• Think through how to marry the organization’s recruitment/retention needs with the value sets of current and future employees. Determine if the organization’s present employment deal meets these requirements. If not, there is a platform for change
• Ensure leaders understand and endorse the need for change. If there is a mismatch between what the organization commits to and what it delivers, it will not overcome its talent challenge
2. Brand the employment deal: become a high engagement employer
• Determine how to differentiate what your organization is “selling” to current and future employees from what other employers are selling. Your employment deal must be compelling to those you want to attract and keep
• Branding goes beyond attracting new employees and addresses the needs of current employees as well. Think beyond “retention” and concentrate instead on continuously attracting your workforce
3. Design: identify the right degree of flexibility
• Determine the right degree of flexibility for your organization. Factors will include corporate philosophy, workforce size, complexity of administration and communication, and competitive environment
• Establish your “menu” of flexible options(e.g., working from home, sabbaticals, benefits, saving for retirement). What parts of the employment deal are fixed and which are more flexible?
• Note that there are legislative constraints. Consider how to maximize tax effectiveness
4. Communicate: involve employees to manage change
• Change management is not easy. Regardless of the degree of flexibility, how the program is delivered and how the culture supports it are important
• More choice means more decisions for employees to make. This requires more and better communication, education, and decision-making tools to help employees select the best deal for them
5. Deliver: build enthusiasm with quality service
• Use effective systems to share the flexible deal in a packaged way that is easy for employees to work through
• Integrate the value, communication and delivery of the total package so that they are seamless
As the labour shortage becomes more acute, employers may be tempted to inject elements of flexibility into their employment deal to stand out from others vying for the same employees. However, a more considered approach with a focus on long-term productivity and improving employee engagement will ultimately be more successful in winning the war for talent.
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Comments
The article was very insightful. We should hear more from Ms. Beech.
-Craig Martin