Posted on: 22 November 2013
Emerging trends in pay and reward
HR Reward | Reward Consultancy | Reward Strategy | Total Reward | Gen Y |
We are starting to see some new reward practices among organisations that we work with and talk to driven in part by the wants and needs of Gen Y. I thought it was worth sharing them with you in this blog so that you can consider them as part of your overall reward strategy and certainly for future planning. What is positive about them from a business perspective is that many of the rewards that are emerging are not high cost items and this helps you provide an attractive but cost effective employee value proposition.
Flexible working
The trend towards flexible working continues but importantly it’s being extended to the wider employee base rather than just working mums with young children. Employees are often running their own business in their spare time or carrying out voluntary work alongside their job and so they want the flexibility to do that.
Sabbaticals
Sabbaticals are becoming more popular, offering employees the opportunity to take unpaid leave from the business in order to pursue personal ambitions, for example travel, or projects such as property development. For organisations with a naturally ‘quiet’ season this can be of great mutual benefit.
Personal development opportunities
Education has been offered to employees as reward and motivation for many years, but usually on the condition that the qualification or course is relevant to the role that they’re doing. The emerging trend is to offer employees the opportunity to study subjects that are of general interest to them e.g. a language or creative skill. Businesses are seeing the long term benefit that broad personal development, self-improvement and growth of individuals can bring.
Universal & life stage related benefits
There is a move away from differentiated benefits based on hierarchy towards a universal approach to reflect ideals such as ‘one team’ or ‘we are in this together’. Alongside this we are seeing the introduction of flexible benefits based on life stage – such as graduates, families, or empty nesters. Making benefits contextual and relevant make them more valuable to the individual employee as well as reducing costs and wastage.
Volunteering opportunities
Volunteering for community and charitable projects is on the increase, with 38% of 16-25 year olds volunteering once a month. Employees are seeking employers that share this value and provide them with the opportunity to volunteer, whether that be by reading in the local school or supporting a charitable project.
If you'd like to talk more about any of these areas, the impact of Gen Y on your reward strategy and planning, or pay and reward generally, then please get in touch.
