Compensation trends to recruit and retain employee talent

With unemployment in the United States at near a 50-year low, employers need to find novel ways to attract new employees and keep their workforce engaged. Creating competitive compensation packages that ensure employee satisfaction must reach beyond pay to more comprehensive views of what workers want from their companies and jobs.

What are seven trends that are key for employers to consider in the current labor market?

7. Engagement

Research has consistently shown that keeping employees engaged is the key to running a successful business.

6. Corporate social responsibility

Workers want to work for a company that supports their values.

5. Pay equity

Perceptions of pay equity can erode employee engagement and trust in management.

4. Minimum wage

In recent years, the effective minimum wage in some areas in the United States has outpaced inflation and grown even faster than typical wages.

3. Hot jobs

Salaries for hot jobs are moving at a more rapid pace than the rest of the market.

2. Employee financial wellness/well-being

Employee financial wellness and well-being initiatives stand to benefit a large number of employees.

1. Total rewards

A company’s ability to attract and retain the best employees depends to a large extent on other pay components in the total rewards package.

To read more about these seven trends in compensation, read this Milliman Insight article by Lauren Busey and Larry Daniels.

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