How it works

Today’s competition for talent entails significant challenges to organizations given many competing variables, such as the rise of technology that supports remote work arrangements, multi-currency payments that allow employees to avoid or overcome any local inflationary effects, aggressive bonus or stock programs that keep employees focused on business growth; and global career plans that lead to “digital nomadism” and provide employees with exposure to other cultures and traditions. Given that employees often have career options outside their current employer, compensation designers should know that retention is just one outcome of the organization’s overall compensation approach. It should be a priority for the organization’s senior leadership.

Retention should happen proactively rather than reactively—employees tend to react positively if any off-cycle adjustment occurs without so much delay. Considering that “one size does not fit all” and employees have different perspectives of how and what they want to do with their careers, the following elements will provide the compensation designer with practical ideas to put in place and foster the safeguarding of talent across the organization:

looks_oneIdentify potential retention mechanisms and execute them accordingly