How Organizations are Revamping Their HR Policies to Suit the Changing Demographics of the Workforce
With the change in the composition of the workforce and their preferences, existing engagement models may not remain relevant for long
A new generation of young professionals are stepping up and changing the shape of the workplace. Companies look forward and prepare for the workforce of the future and understand the organizational changes it will bring. This shift from a customer-centric to employee-centric experience has redefined business strategies from the ground up.
Changing Demographics and its Impact
While the employers once ruled the market with the privilege of being able to hook the best candidates, the priorities have changed to focus more on development, transparency and work-life balance. Demographic change is the main reason organizations need to adapt their practices in order to respond to increasing workforce diversity. With the change in the composition of the workforce and their preferences, existing engagement models may not remain relevant for long. Hence, the "One Size fits all' approach is questionable to work in this scenario. It's all about creating individual experience journeys which will inspire and engage the employees. Therefore, flexible benefit plans have become increasingly popular with employers. They allow employees to choose the benefits they want or need from a package of programs offered by an employer.
Advantages of Flexible Benefits
With the evolving workplace, offering benefits to employees is important because it shows that a company is invested not only in their overall health, but their future as well. An ideal employee benefits package can help attract and retain talent. The right benefits package can give the employee a distinct advantage in competitive recruiting situations. Another important advantage of flexible benefits is that one can improve a company's bottom line by engaging employees to participate in well-being programs and leisure activities. Healthier employees mean reduced healthcare costs for the organization. Employees with fewer health risks experience fewer sick days, fewer trips to the doctor, and more time working in the organization, bringing their best selves to work every day.
Millennials Changing the HR Wheel
With millennials becoming a vital part of the workforce, the need for "reinventing the HR wheel' to adapt to a changing work culture has never been greater. For them, culture is an extremely important consideration when deciding to join an organization. It is, therefore, a significant challenge for employers to live up to the expectations of a young, socially conscious workforce. Therefore, preparing the organization to adapt to the changes caused by this disruption will be one of the biggest challenges organizations will face in the coming years. Needless to say, HR leaders continuously work towards tweaking their HR policies to suit their needs and accommodate the millennials. Flexible policies are an important element here which promote collaborative culture, organizational transparency and increased communication to engage with today's millennials.
More and more employers believe that a flexible work schedule attracts diverse talent, and even benefits the company at large. It's been a staple in many workplaces for a long time, a nine-to-five schedule doesn't work for everyone. Not only does it appeal to stay-at-moms, travelers, freelancers, and more, but it may reduce company costs and increase productivity.
Customized Benefits Plan
Employee needs vary according to their life stage which is the core reason to make the benefits portfolio more flexible to suit different needs of employees and put them at the driver's seat for choosing benefits relevant to them. An industry analysis of employee needs revealed that employees below 30 and single want to invest more in their learning and development, lifestyle and parental insurance cover. The married employees with kids are more interested in increasing the insurance cover for their spouse and parents. They were more focused on achieving work-life balance and wished to begin investing in their retirement plans. Lastly, employees who were 45 and beyond wished to see an increase in children's education cover, life cover and medical cover.
What one offers as work benefits is a big deal for employees. Top companies known for their perks for their employees have strong development programs, outstanding benefits not only for employees but also to their families, and fun work cultures. By allowing employees to pick and choose their benefits, organizations will be in a better position to meet their needs. Therefore, HR policies, once initiated, need continuous review, adjustment and enhancement to keep pace with the changing needs and preferences of our current and future workforce.