Why Young Employees are Demanding More Flexible Compensation Methods
Young people are seeking more flexibility in how they work and how they’re paid. It is this understanding that will inform hiring and retention strategies for various People Management Teams across the world. The pandemic and the ensuing lockdown changed a lot of the realities of human resources management. Employees worked from home and indeed saw that they could do their work well from the comfort of their homes; that may not change anytime soon.
This has since opened up the floodgates of possibilities when dealing with employees. Companies pay for entertainment, data, health insurance, retirement benefits and more to attract the best talent. What are you, a people Manager doing to protect your talent from being poached? Before we go into that, here’s why employees are demanding flexible compensation methods;
Employee Spending Behavior has Changed Over Time
There’s a high chance that employees are more likely to shop online and engage in round-the-clock e-commerce; a situation where you can buy from anywhere, anytime. With this general shift to ecommerce, following the pandemic, employees continue to need increased levels of liquidity for their changing lifestyle. Young people are working remotely, traveling the world and taking up unique and unconventional lifestyles as a way to leverage the flexibility from work. Their spending will follow this trend and that is why it’s important to offer a more flexible compensation plan; one that enables the employee to request their earned salaries anytime, anyday.
More Employees are Becoming Passive Investors
With the democratization of investment opportunities around stocks and cryptocurrency trading, young employees are increasingly looking for enough liquidity to take advantage of time-sensitive investment opportunities. 94% of crypto buyers are Gen Z and Millenials. If you’re a business owner or people manager, you need to understand that young employees will move to jobs that enable them to invest timely, with the hopes of increasing their wealth overtime. What are you doing to retain these ambitious people managers?
With Flexible Working Conditions Come Flexible Compensation
Post lockdown, people have seen they can do more without breaking their back. Employees have especially seen that they can deliver quality work right from the comfort of their homes. For them, everything is now possible. People Managers cant easily dismiss non-conventional compensation requests because of the new shift in employee behavior. Requests will come and it is left for people managers to ensure that employees remain satisfied at all times. Being able to access earned wages at any point in the month, is a request that people managers have reportedly received recently. How are people managers solving this?
It's the Employee’s Market
With the Covid, businesses went digital. What this means is that lots of businesses that had no actual plans to have an online presence, now have one. Hence, there’s been more jobs created in the digital economy across the world and more will be created soon. Weforum posits that 150m technology jobs will be created in the next 5 years starting from 2021. Employees, especially ones with digital skills, know that they will find jobs if they leave their present jobs. It doesn't matter where they are; once they have an internet connection, they can find jobs in foreign countries and earn in foreign currencies right from their homes in Africa. What this means is that they have increased bargaining power to earn what they want, how they want it and when they want it. People Managers must continue to explore all options that add value to the employee compensation experience.
There Are Solutions Available to help you with Flexible Compensation for Staff
Cadana Instant Pay offers People Managers an opportunity to delight their employees by offering a much-needed flexibility in compensation. How does it work? Workers can request a portion of their earned wages and the People Manager can approve, at any point in the month. Let’s further break this down. Imagine an employee runs into an emergency by 10th of the Month when salaries are paid 25th of the month. Instead of losing sleep and seeking loans from third party individuals or loan sharks, they simply make a request on their app and a portion of their salary comes into their accounts? Well, that is how simple it is. It is not a loan; it is simply a portion of the employee’s earned wages. This is a solution employers can offer employees as an additional benefit during recruitment to sweeten their offer letter.
We’ve done the work so you don't have to. Visit cadanapay.com to get started.