Cat DiStasio, Writer at ADP

(Originally published on ADP’s blog, “Spark”)

It’s time to stop defining compensation packages by financial components alone. The new definition of compensation encompasses everything employers trade workers for their time, energy and attention. Here’s what to know.

The conversation around compensation needs to evolve, and swiftly.

The Great Resignation put pressure on employers to revamp compensation packages—primarily by increasing wages and adding a variety of low- or no-cost benefits like flexible work schedules. Due to the fact that more than three-quarters of employees say they’re more likely to be loyal to their employer if they have flexible work options, this is a crucial offering.

These shifts were necessary to boost employee engagement and attract qualified candidates. But it hasn’t been enough. Now, business leaders need to push further to make a meaningful impact on employees’ lives and remain competitive in the talent market.

We’re on the precipice of a larger revolution, and the people who make strategic decisions about workforce management in organizations of all sizes have the power and the responsibility to create a new paradigm befitting the current times as well as the future. There’s no surefire way to future-proof your employee engagement strategy, but focusing on moves that acknowledge, reward and value your people as whole humans will make more of a difference than anything you can do with your pay structures. To continue moving forward, successful leaders will embrace a new definition of compensation—one that encompasses everything employers trade people for their time, talent and attention.

Read more here.