A new approach to the pursuit of better organizational wellbeing is needed in today’s business environment. Operations, finance and HR can no longer function adequately in silos when success requires a strong connection between the company’s strategy and the executive team’s priorities and resources. The CEO’s vision and strategy execution, the CFO’s management of risk and financial sustainability, and the HR leader’s development and implementation of compensation and benefit programs have all become table stakes. When these abilities are closely aligned, they can effectively address the increased costs, shorter decision cycles and higher complexities of managing talent.
To help organizations bring out their better, Gallagher has created an approach to compensation, benefits, retirement and employee communications — Gallagher Better WorksSM — that addresses the interconnected nature of health, financial security, engagement and culture. Key areas of focus include assessing the effects of this relationship on productivity and turnover, and finding opportunities for improvement. From any starting point, any employer can drive progress toward better talent attraction and retention outcomes by promoting innovative, aligned programs.
There is no single solution for attracting and retaining employees that works equally well for all employers, but there is a singular process for filling that void. Coordinated changes in the employee wellbeing investment portfolio, including the physical, emotional, financial and career dimensions, can resolve current challenges and promote the growth of the entire company.
These investments are essential to remaining relevant and gaining ground in the markets for both business and talent. And they need the support of strong HR technologies, solid compliance frameworks and effectively targeted communications.
Managing talent by aligning incentives
Employers focused on growing their businesses are more clearly identifying what needs to be done better. Core to this conversation is a strong workforce planning framework that matches the right employees to the right number of required roles.
These pairings should sync with changing business needs at an optimal level of labor cost and productivity. Often, improvement efforts also involve leveraging an effective balance between base salary and variable incentive compensation. This includes offering non-qualified deferred opportunities to help retain key talent, and addressing pay equity to support the employer brand.
Driving engagement through culture
If the goal is transforming organizational culture into a competitive advantage, strong values and a compelling vision for the future need to be shared with the workforce and aligned with their incentives. Key drivers of engagement include career wellbeing opportunities and personalized, consistent and comprehensive communications that reach employees with the right message at the right time. Transparent commitments to diversity, corporate social responsibility and a respectful workplace are often top selling points for both attracting and retaining employees. A strong culture can also be reflected in a strong employer brand, instilling pride in current workers and capturing the attention of future workers.
Using employee preferences to prioritize total rewards
Competition for today’s multigenerational employees is forcing changes in compensation and benefits plan design. Adding flexibility around the preferences of distinct employee populations produces a total rewards package capable of meeting diverse needs. And customizable options like student loan refinancing and pay-down plans, or voluntary insurance coverage are especially appropriate for the times. They can reduce financial stressors, create risk protection and stretch the value of employee earnings.
Adopting new healthcare models to address costs
More employers are turning to innovative healthcare tactics like telemedicine and cost-transparency tools to guide better employee decision-making, both cost-effectively and conveniently. Meanwhile, disease management programs offer help with chronic conditions, and value-based medical tactics such as designated centers of excellence promote more affordable, high-quality care. There’s also a trend toward reviewing healthcare approaches and evaluating funding strategies to better fit within the boundaries of cost, fees and risk.
Opportunities in a fast-moving, ever-changing global economy wait for no one, but uncertainty about the future is conquered with confidence in the organization’s present leaders, strategies and state of wellbeing. Leadership models are evolving as CEOs, CFOs and HR leaders have begun to plainly see the need to evaluate real-time workforce metrics and employee wellbeing data. And they understand the importance of this process for all areas of current strategy and operational decision-making. When it becomes second nature for leaders to collaborate on linking employee health and engagement with organizational culture and outcomes, employers and employees alike will benefit.
This article is an excerpt from our 2019 Organizational Wellbeing & Talent Insights Report – U.S. Edition.
William F. Ziebell
CEO, Gallagher Benefit Services, Inc.
Bill oversees the strategic operation and management of Gallagher’s global benefits and HR consulting business. He brings more than 30 years of consulting and problem-solving experience to this role. As the chief driver of client-service excellence, Bill continues to guide and inspire top performance across the organization.