How Will Compensation Change in 2022?
The workplace landscape has changed drastically in the last two years. Things like remote work, candidate-driven hiring, and “The Great Resignation” have led the way. But the one thing that has become a challenge as a result of all of it – compensation.
Compensation challenges have long been in the minds of leaders. It’s never been easy – we wrote about how to make better compensation decisions here. But then 2020 and 2021 happened, and the challenges, while still there, look a bit different and have become even more challenging.
Here are some questions leaders are asking themselves (or should be):
- Will compensation need to change to encourage “in-office” work?
- Will compensation need to change to compete with others for right-fit talent?
- Will compensation need to change to assure your leaders stay?
- How do we manage “internal equity” (compensation of existing employees) with 2022 higher compensation levels of Top Talent who bring critical new skills?
It’s a race to find the right talent, fill the leadership roles needed, and keep the leaders worth following. Compensation affects all of it and can help drive the transformational talent needed.
How will you respond to this new marketplace?
It starts with a deep understanding of the marketplace. Don’t just look at what others are doing and follow – lead the way! That’s what will make the biggest difference for your company.