Talent attraction and retention are challenges that most organizations face given the evolving market landscape. On April 18, 2024, John Clements Consultants hosted its 2nd session of the Weekly with JC Leadership and HR series, focusing on compensation and benefits trends. The panel included Ms. Grace Sorongon, Executive Vice President of John Clements Consultants; Sean Darilay, Principal & Talent Solutions Business Leader at Mercer Philippines; Donna De Santos, HR Director of Dexcom Philippines; Russielle Macale, Vice President of Human Resources & Administration, Investment & Capital Corp. of the Phil. (ICCP); and Vincent Braga, Vice President, Total Rewards & People Analytics at JG Summit Holdings, Inc.
The discussion commenced with the presentation of data gathered from the pre-event survey. The data suggests that organizations are implementing various strategies to address talent attraction challenges, including re-evaluating compensation and benefits, enhancing workplace flexibility, and providing well-being and mental health support. Survey data also revealed that the primary reasons for attrition are better salaries and benefits offered by another company, limited career advancement opportunities, and issues regarding work-life balance and culture.
Salary and Rewards Trends
Most companies in the Philippines implement salary adjustments between January and April, with a forecasted 6.2% increase for 2024. Interestingly, different industries position themselves differently in the market competition. The data indicates significant pressure on companies in the energy and wholesale/retail sectors to allocate more budget for salary increases. High-technology companies, struggling to find niche talents, continue to offer higher salaries compared to other markets. Therefore, organizations need to innovate in how they allocate budgets, especially in Total Rewards.
Benchmarking has also evolved, extending beyond industry-specific comparisons to encompass a wider range of industries. Talents are increasingly mobile, exploring diverse options across industries. Although basic salary remains a primary consideration for candidates, companies are encouraged to include Total Rewards, such as benefits, allowances, learning and development opportunities, diversity initiatives, wellbeing programs, and flexibility in work arrangements.
Impact of Employee Branding and Culture on Talent Attraction and Retention
There has been a significant shift in talent priorities due to the pandemic. Alongside salary and flexible work arrangements, candidates now prioritize employee brand and culture. Therefore, HR professionals and business leaders should stay agile and updated on compensation and benefits trends. They also emphasized how positive employee experiences promote retention. People leaders play a crucial role in delivering these experiences and should align with the company’s vision. Additionally, leaders should listen to employee needs. In the age of AI and digitalization, human skills remain a priority. Effective communication and engagement are essential for organizational success.
Understanding Employee Experience and Journey
Understanding the employee journey, including experiences, pain points, and personas, provides insight into compensation and benefits trends. Data-driven insights into the employee journey help align programs with employee needs.
As a recruitment consultant exposed to diverse talents, I find the data and insights relevant. Initial discussions with candidates now often involve work arrangements and perks. Companies should be innovative and data-driven when designing programs to address organizational needs. Communication is an investment without a cost.
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