According to the most recent Society for Human Resource Management (SHRM) annual Employee Job Satisfaction Survey, “Forty-five percent of employees reported that they would be likely or very likely to look for other jobs outside their current organization within the next year… As the economy continues to improve and job seekers become more confident in securing new positions, organizations must design competitive benefits packages to attract and retain top talent. No matter what benefits you offer employees, it is always a good idea to take the time to re-evaluate what you offer employees and educate them about what their total compensation package is worth. With nearly half your employees keeping an eye on new employment opportunities, ensure they are aware of the full value of their compensation, lest they perceive greener pastures elsewhere.
Workplace benefits choices can seem confusing to many employees. Employers often experience that confusion firsthand during the organization’s open enrollment period. On top of unfamiliar language, there is a lot of information to process and important decisions to make. Though studies have shown that people tend to prefer more choices, they are less likely to make a decision and ultimately less satisfied with their decision when more choices are offered. With multiple benefits options, some employees may choose to simply do nothing during open enrollment, even when it may be advantageous to make changes to their benefits plans.
Companies have traditionally invested both time and money into attracting new talent to their organizations, but have often been less successful at retaining valuable employees. Over the past 20 years, organizations have begun to invest in the idea of Human Capital Management (HCM). One part of HCM is talent management, which focuses on filling vacant or new positions with savvy people, and on developing the potential and skills of existing employees. Software tools are critical to effective talent management. Since Enterprise Resource Planning (ERP) systems are already being used to manage corporate resources, they are an ideal platform for managing human resources. This white paper, explains the process of defining and using competency models to jumpstart talent management initiatives as part of an HCM strategy, and how software tools can automate these processes.