In a bid to attract and retain talent, companies are adopting non-conventional compensation and rewards programme for their staff such as higher education support, paid vacation, global assignments and flexible working hours, a survey says.
According to a study by Dun & Bradstreet on future workplace trends, though the traditional monetary forms of compensation dominate the various benefits offered by companies, organisations are increasing their focus on non- conventional methods of compensation.
"As the environment in which businesses operate becomes increasingly complex and the war for talent intensifies, companies are re-working their people strategies," D&B said.
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HR Leaders are hence dealing with a situation of identifying cost-effective tools that have a high positive impact on employee morale and productivity, it added.
As per the survey, nearly 77 per cent of the companies surveyed offer insurance benefits to their employees. Around 62 per cent of the HR leaders cited providing healthcare and related benefits to be most critical and is a key area of focus with respect to compensation management going forward.
Moreover, 41 per cent of the respondent companies offer higher education support related benefits to their employees.
HR Leaders are also looking to innovate in terms of providing career-related rewards to employees in their organisations.
Providing employees with opportunities for global assignments and support for pursuing higher education has emerged as the top choices in rewarding employees.
Companies in metro cities cited offering opportunities for global assignments as the most effective tool in rewarding employees, while as per companies in the non-metro cities, offering support for pursuing higher education is the most effective tool in rewarding employees, the report said.
Flexible work arrangements are seen to be having a positive impact on employee retention.
About 57 per cent of companies surveyed have implemented flexible workplace practices. Among such companies, 83 per cent indicated that these practices have had a positive impact on recruitment and retention in their organisations.
In-house doctor and in-house fitness centres are also emerging as the most effective practices in enhancing work-life balance, the survey noted.
