The other day i was analysing on what motivates an employee to work for an organisation. I heard many of my friends say they no longer feel any challenge in the work and it became so routine that they are considering to change the job. Some of these people are high performers on the job and provided increments which are almost double to that of ordinary performers.
Today while reading a chapter on Compensation & Benefits I got the solution for my dilemma
The salary or the pay consists not of 2 parts (Cash Compensation,Benefits like health insurance, Vacations etc ) but 3 parts , the 3 rd one being the most important one and the often overlooked one "Relational Returns"
Relational Returns are the Recognition & Status,Security of job,Challenging work and Learning opportunities
Most of the times the companies looks at the first 2 parts of the pay and ignores the third. Even in case where consideration is given to 3rd part especially Learning opportunities and challenging work there is a difference in perception between what constitutes to be a learning opportunity or a challenging work between employee and employer
This also explains why people tend to help others in social networking sites (self example : I am very active on Pagal guy, from where neither i get any monetary benefits or special benefits except for the recognition, status and respect from the aspirants ) .
So instead of having a narrow view of looking at limited options in having employee retention , we need to increase our scope and consider other options which are given less thought of
One guiding principle here can be that "if we travel in the same beaten path , we reach the same place every one else had reached"
Today while reading a chapter on Compensation & Benefits I got the solution for my dilemma
The salary or the pay consists not of 2 parts (Cash Compensation,Benefits like health insurance, Vacations etc ) but 3 parts , the 3 rd one being the most important one and the often overlooked one "Relational Returns"
Relational Returns are the Recognition & Status,Security of job,Challenging work and Learning opportunities
Most of the times the companies looks at the first 2 parts of the pay and ignores the third. Even in case where consideration is given to 3rd part especially Learning opportunities and challenging work there is a difference in perception between what constitutes to be a learning opportunity or a challenging work between employee and employer
This also explains why people tend to help others in social networking sites (self example : I am very active on Pagal guy, from where neither i get any monetary benefits or special benefits except for the recognition, status and respect from the aspirants ) .
So instead of having a narrow view of looking at limited options in having employee retention , we need to increase our scope and consider other options which are given less thought of
One guiding principle here can be that "if we travel in the same beaten path , we reach the same place every one else had reached"
Flexible working arrangements coupled with great manager relationhips are a great retention driver. Compensation is anyday the first driver, but these have a good 20-25 % impact on retention.
ReplyDeleteI am a comp+ben associate consultant and a hardcore TISS HRM aspirant
@Abhishek: Thanks for the comment .
ReplyDeleteYour statement on relationship with manager is very apt
There is a saying that "Employees leave the managers and not the companies" which is true even in the current day context :0
Anvesh I have been shortlisted for TISS HRM..and have done a lot of work in the comp and benefits space, How should I present it?
ReplyDeleteawesome blog avneesh....
ReplyDeletei would really like some more of HR articles...... if u have some free tym... :D
cheers