Manage HR Magazine | Monday, July 05, 2021
The unexpected shift to telecommuting not only forced many firms to accelerate their digital transformation plans but also helped to highlight the gaps in digital roles and capabilities.
FREMONT, CA: Throughout the year 2020, the COVID-19 epidemic posed a threat to every facet of life and society as we knew it. In the business world, the HR department played a critical role in steering their organization's response to the epidemic, contributing to a recovery strategy in 2021, and strengthening resiliency against similar disruptions in the future.
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In the early days of the pandemic, compensation administrators struggled to devise a calibrated response for reducing expenses while still protecting employees. This situation underlined the necessity for firms to improve their agility and openness while also future-proofing their compensation approach. Here are some areas of employee compensation that HR should carefully explore this year to assist firms stay on track with their compensation targets into 2021.
Payment Restructure for Remote Workers
More than half of the worldwide workforce will continue to work remotely through the first quarter of 2021, mostly to protect employee safety. However, as per a recent survey, 61 percent of firms could make remote working a permanent policy in the next three years as its multiple benefits become apparent. For instance, about half of firms anticipate considerable cost savings in real estate and transportation in the next years. Budgets for commuting allowances, corporate automobiles, and business trips have been shifted by some to support maximizing compensation for critical workers and reorganizing the benefits of a scattered workforce. They also know that when employees have a say in where (and when) they work, employee engagement and well-being improve.
Differentiating Rewards for Critical Digital Talent
The unexpected shift to telecommuting not only forced many firms to accelerate their digital transformation plans but also helped to highlight the gaps in digital roles and capabilities. Remote working and virtual transactions became the norm, fueling an even higher need for digital talent, particularly those with expertise in crucial jobs such as machine learning, user interface design, full-stack development, and technological product development.
Furthermore, remote working has opened up the talent market, allowing firms to employ the best people not only from anywhere in the world but also from a larger and more diversified talent pool. According to the latest survey, 90 percent of organizations face significant challenges in attracting and retaining critical digital talent. Having access to a much larger talent market can help organizations remain on course with their digital transformation journey.
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