To effectively personalise compensation and benefit packages in a competitive market, companies need to adopt a flexible and creative approach that reflects the diverse needs of their employees, said panelists during HR Summit & Expo (HRSE) conference at Dubai World Trade Centre.
During the panel The Fast Track to Hiring Top Performers: Modern Compensation Strategies, panelists said that a one-size-fits-all model is no longer effective, as employees at different career stages have distinct priorities.
Junior to mid-level employees are often focused on career development, whereas senior management is more concerned with bonuses and career progression. By tailoring compensation based on these preferences, organisations can better align their rewards with individual employee goals, increasing satisfaction and retention.
An important aspect of personalisation is innovating beyond traditional monetary rewards. Companies can implement non-monetary benefits that resonate with employees’ personal and professional needs. For example, offering additional leave, flexible working hours, or performance-based perks can significantly enhance employee satisfaction.
A programme like “You Deserve It,” by Abu Dhabi Housing Authority where employees are rewarded with extra time off or flexible work arrangements, can be particularly effective in retaining talent, especially in an agile market. These non-monetary rewards demonstrate that employees’ well-being is a priority, fostering loyalty and commitment.
Another effective strategy is designing long-term retention benefits that increase in value over time, such as a family financial allowance or performance-based retention bonuses. These types of benefits can encourage employees to stay longer by providing increasing rewards the longer they remain with the organisation.
Linking such rewards to individual or company performance further incentivises employees to contribute to the organisation’s success, aligning their personal goals with the company’s objectives, the panelists said.
Therefore, oganisations must also continuously benchmark their compensation packages against market standards which can be done through third-party assessments who can provide insights into market trends and competitive salaries.
However, relying solely on external data is not enough. Internal data, such as employee surveys, feedback from exit interviews, and an analysis of why candidates accept or reject offers, is equally critical, they said. This data-driven approach ensures that companies stay competitive whilst addressing any internal gaps in their compensation strategies.
Nonetheless, they elaborated that personalisation also involves offering unique opportunities tailored to individual employee preferences. For example, in cases where a company cannot offer top-tier financial compensation, creative solutions such as offering flexible working arrangements or consulting opportunities can be highly attractive.
These non-traditional benefits may appeal to employees who prioritise work-life balance or seek additional income streams. Offering flexibility in work location or hours, or providing opportunities for employees to work on external consulting projects, can set a company apart from competitors, even if its salary offerings are not the highest.
Panelists agreed that personalising compensation requires a deep understanding of employees’ diverse needs and an innovative mindset. By aligning rewards with individual career goals, offering creative non-monetary benefits, leveraging both external and internal data, and thinking outside the box, companies can design compensation packages that attract and retain top talent in a highly competitive market.