A Look Back at Summer HR & Compensation Trends

Businesses are considering human resources and compensation trends as they plan their operations. Let's review HR and compensation trends to see what companies should watch for this year. 

A Review of the Biggest HR and Compensation Trends

To stay competitive, employers must understand HR and compensation trends. Here are trends in HR and compensation that emerged over the course of the season. 

Employee Engagement and Satisfaction 

The first trend was an emphasis on employee engagement and satisfaction. Companies created a supportive, comfortable, and successful workplace. Appreciation programs and financial security benefits helped employers foster a positive workplace culture. To retain top talent, companies offer competitive salaries, health plans, and other benefits. Doing these things can increase engagement over time. 

Increased Use of Analytics 

Another year-long trend was the increased use of analytics for performance management. More companies are using performance reviews and analytics to evaluate and motivate employees. Understanding how they can use metrics in compensation trends is important as performance management relies on data.  

Flexible Work Arrangements 

To adapt to changing circumstances, employers have prioritized flexible work arrangements. According to Flex Jobs' Employee Engagement Report, 48% of employers reported improved morale and engagement due to remote work arrangements. Employers are using remote working and flexible time to motivate employees. They consider outside factors like childcare and online schooling deadlines.

This year highlighted company culture and analytics' performance management benefits. It also introduced flexible work arrangements to companies that needed them.

Staying Compliant with Overhead Costs

As a business leader, complying with laws and regulations is a top priority. That's especially true when it comes to overhead costs. If you offer flexible work arrangements or open a remote office, you must follow compensation, salary, and benefits laws.

So, what's the best way to do that? Let's look at the key trends that business leaders should consider when managing summer HR & compensation costs.  

Embracing Flexible Work Arrangements  

More companies offer flexible work arrangements that let employees choose where and when they work. This can cut costs and give workers more flexibility during summer. Before making any changes to an agreement, consult your corporate counsel to make sure it's legal.  

Utilizing Technology 

Flexible work arrangements and technology can reduce overhead and manage remote teams. For example, HR software simplifies onboarding and training. This can help companies hire without incurring in-person meeting costs. This can also help team members who work remotely during the summer communicate better. 

Creating an Employee Retention Plan 

Once summer is over, businesses must create a retention plan to retain their most valuable employees. It's important to create a compensation structure that rewards employees for their contributions. Employers should also foster a culture of recognition and feedback. 

Creating a competitive salary structure with incentives and bonuses is key to employee retention. Employers should also offer tuition reimbursement, flexible vacation policies, and career development programs. These benefits can help employers keep their staff happy and motivated to stay.

Reviewing Policies Regularly

As summer approaches, business leaders should review their policies to ensure they are following the law. This includes reviewing overtime, vacation, and other paid leave policies. To support mental health, companies should create wellness programs. And let them use online resources to access the latest HR and compensation trends. 

Takeaway

Businesses can maintain employee management consistency by using compensation trends and technology. Reassessing salaries and benefits can also help ensure employee compensation. Learn more about the latest compensation trends that can affect your planning this year.