With the market in a constant state of flux and record unemployment numbers, attracting, compensating and training employees is a challenge for organizations across multiple industries, including the banking and finance industry. Candidates have multiple options to consider and compensation and benefits expectations that exceed program limits. Even current employees see greener grass and may be tempted to leave instead of growing with their current company. Where employers had negotiation power in the past, now the power has shifted to employees and candidates.
Annually, QTI fields a Human Resources Trends Survey to identify top HR challenges and solutions, collecting data on your local talent competitors' attraction and retention strategies, compensation and benefit plans, diversity and inclusion programs, and more. QTI's 2020 HR Trends report is based on data submitted by primarily Wisconsin-based employers across a variety of industries with approximately 30% of respondents from the banking industry.
In past years, employers in the market have been most concerned with attraction strategies that bring talented employees to their teams; while that is still true, this year, it's clear employers are realizing an inward focus on employee engagement can be a worthwhile tactic to enhance external interest. Our study found that the higher their employee engagement, the fewer HR challenges they face. In fact, 83% of high-performing companies find their workforce to be highly engaged. Because of this engagement, they see better company performance, lower voluntary turnover, and lower spend on year-over-year payroll increases, to name a few.
In the current state of the market, everything from an aging workforce, to improving leadership development, to a demand to have better work-life balance can impact HR strategies. This year's survey respondents report there's a range of how these challenges – and more, are impacting their businesses in 2020.
QTI's 2020 HR Trends report provides actionable strategies to overcome these HR challenges and increase employee engagement and, thereby, company performance. Key points of the identified strategies are that if you can develop a strong employment brand rooted in employee motivators and align your compensation and benefits to that, you'll be building a strong foundation. But build on that foundation with clear communications to employees and candidates, and follow up with necessary training and rewards, and you should expect to see your voluntary turnover decrease, your employee engagement increase, and the company bottom line prosper. It's easier said than done, but results from this survey and others shows that focusing on the full set of these components allows them to feed into one another to create a program that's greater than the sum of its parts.
As you plan your 2020 strategies to reflect your workforce's motivations, your market competitiveness, and key business initiatives, ask yourself:
- What top HR challenges are you facing this year?
- When was the last time you evaluated your employment brand?
- Are your strategies effectively addressing your employee retention?
- How do you encourage your employees to engage?
- How do you communicate your company's total rewards philosophy to employees?
- How do you want to progress on the pay transparency spectrum (think how and why pay decisions are made)?
- How can you evolve your benefits to differentiate your company and align with employee motivators?
- Are you prioritizing and taking actions to advance a diversity and inclusion strategy?
- Are your talent management programs effectively advancing your employees and your company?
Rector is Chief Operating Officer with QTI Total Rewards Consulting, a WBA Associate Member.