The battle for talent continues. Even though the economic outlook could be better, attracting the right talent to your company and getting them excited about working for you will still take more effort than ever.
The overall package consisting of salary and attractive benefits plays a major role in this. According to the Kununu Labour Market Study 2024, employees want higher salaries are the top issue for the future of work for around 53% of respondents, closely followed by tax relief and workplace flexibility.
This makes it all the more important to take a holistic approach to compensation and benefits in order to develop a proactive strategy that for counteracting the „war for talent“.
Legal framework conditions are changing
Exciting times also lie in this area of law. Emotions are running high.
- Employers are concerned about the increased transparency regarding remuneration
- while employees are concerned about the potential for open comparisons with others, which can have both positive and negative consequences.
Is this a volcano that is already bubbling and about to erupt, or is it just a lot of hot air?
SDG reporting
From 2025, SDG reporting will become a reality for listed companies with a net turnover of more than €40 million and more than 250 employees. From then on, companies will be required to report key figures to demonstrate sustainable business practices and thus moving closer to achieving equality. This will soon become a reality.
The United Nations‘ vision is to end poverty, protect the planet and ensure peace and prosperity for all by 2030 through SDG reporting. Whether this can be guaranteed remains to be seen!
Wage Transparency Act
But that’s not all! In 2026, the Pay Transparency Act will also come into force in the EU. The principle is that men and women should receive equal pay for equal work. The new EU regulations are intended to strengthen pay transparency.
There are two major issues that companies will need to address in the coming years with regards to equality and remuneration. Consequently, companies must review their compensation and benefits strategy immediately. Any inequalities must be identified and rectified swiftly. But where do you start?
Here are my 5 tips for a compensation and benefits strategy
The recipe for success
All well and good! Unfortunately, there is no single recipe when it comes to compensation and benefits. The most important thing is to consider what suits my company and my culture.
During these processes, it is important to stay true to your values and avoid blindly following certain trends. These often do more harm than good. Adopting a sustainable approach and designing your strategy in such a way that will benefit future generations is very smart, and some companies are already doing this well. #GreenCompensation&Benefits
But does it work? You can only find out if you make it measurable. Considering HR metrics in advance and comparing them at regular intervals is an important part of the compensation and benefits process. These metrics show whether the measures you are taking are really right for your company. But don’t despair – success takes time.
My conclusion
I hope I have provided you with some inspiration for your next compensation and benefits strategy. If you are currently struggling to see the wood for the trees, I recommend registering for the theme days to gain a good overview. Alternatively, you can contact me and we can break the topic down together.
The information in this blog post comes from the „Compensation & Benefits Theme Days“ seminar at the ARS academy, which provides a good overview of the topics and offers a solid foundation for exploring this subject in more detail.
Many thanks to the speakers, Carina Stiglbauer, Zuzana Arbetova, Claudia Kernstock, Peter Baumgartner, Lukas Starkel and Karl Scharfetter. Further information and dates can be found under Theme Days: Compensation & Benefits on the website www.ars.at.
Ues the code HRPassionista2024 to receive a 10% discount on the seminar fee, if you would like to participate.