During times of great chaos, most organizations do what they must to make it through the storm; however, once the chaos of the immediate disruption is over, organizations should not forget the value of strategy.
The role of HR in the development and implementation of an organization’s strategy is to continually assess if the HR strategy aligns with the overall business strategy. This blog post will discuss the importance of compensation strategies on the recruitment and retention of Generation Z employees.
Obviously, the COVID-19 pandemic has made all employers and employees anxious about their personal and professional lives, but even before the spread of COVID-19, Generation Z employees stated that their biggest barrier to professional achievement was anxiety!
According to research from the Workforce Institute, posted in an HRD article, 34% of the Generation Z survey participants felt anxiety was their top barrier to workplace performance, with women reporting a higher level than men—39% to 29%, respectively. When the responses were examined by country, the statistic rose to 44% in Canada—higher than the U.S., which reported 40%.
These are revealing statistics that show a significant number of Generation Z workers have anxiety, and it is holding them back in their performance in the workplace. Additionally, the article references the American Psychological Association 2018 report, titled “Stress in America: Generation Z,” which found that “77% of Gen Z adults in the U.S. were stressed about work versus 64% of adults overall.”
So, what does workplace anxiety have to do with strategic compensation? If you refresh yourself on Maslow’s hierarchy of needs pyramid, you will recall that the first and second level are physiological needs and safety needs, respectively. Organizations know that one of the best ways to reduce anxiety in the workplace is to ensure employees’ basic needs are being met.
All employees, including Generation Z employees, need the security of a full-time job and benefits to flourish in the workplace. Organizations should consider the needs of Generation Z when designing their strategic compensation programs.
1. Click to see a research article from the Workforce Institute. Read through the article, and prepare a list of what Generation Z would like to see in the workplace from the perspective of compensation and benefits.
2. Based on the list from question 1, create a summary presentation to convince your CFO that these principles should be integrated into the organization’s strategic compensation plan. You can add supporting research to your work as well.