Introduction

**The new way of working is having an undeniable impact on compensation planning. Huge shifts in how we work, where we work, when we work, and even why we work have put HR teams against the wall when it comes to compensation.

** We’re all well aware of the major factors pushing us to new realities of working — the pandemic, talent and skills shortages, the necessary shift to remote and hybrid teams — for which not just organizations, but HR departments and policy were often unprepared. Additional pressures on a myriad of industries — from inflationary pressure to a potential economic slowdown — have had an impact on many employees.

Social and legislative changes are also playing a role, including a continued emphasis on the importance of DEI, including pay transparency legislation. Already, jurisdictions in the US and Europe have mandated disclosure of pay ranges to current or prospective employees, either automatically or by request. As employees know where they are paid relative to peers inside and outside of their organization, pressure on HR departments to address equity will increase.

More than ever, employees want to know they’re valued. They want transparency and clarity around compensation. They want to know they’re being compensated well, and that their compensation and rewards are fair.

Employers on the spot

But what happens when organizations overlook these new employee expectations? Consider your need not just to hire but to retain an engaged and skilled workforce. And in these days of unprecedented turnover, compensation is more critical than ever.

The Great Resignation has made it clear that hiring and keeping talent is no simple matter. Further, if your compensation isn’t up to par with your competitors, the investment you’re making in salaries may be fruitless. For countless roles, not just critical knowledge positions, organizations are in fierce competition to attract and retain the talent they need to accelerate growth and performance.

Today companies need to make sure they’re evolving their compensation planning well beyond legacy approaches to embrace the innovative, disruptive strategies that truly address compensation-based competition.