Expectations: Employers vs. Employees, Is There a Middle Ground?

Friday, December 16, 2011

Towers Watson’s May, 2011 report, “The 2011/2012 Talent Management and Rewards Study, North America” clearly showed that both employers and employees are out of touch with each other’s expectations. This is most clearly illustrated around those reasons each group perceived why employees would consider joining an organization. US employers perceived that employees were attracted to their organizations due to reasons such as, Base pay, Organization's mission, Organization's reputation, Career development, and Challenging work. On the other hand, employees reported that Job security, Base pay, Health care, Length of commute, and Time Off were their top concerns. As might be expected, “Base pay” was the only issue on which they both agreed. Employers and employees are equally out of touch with the reasons why employees would chose to leave an organization. US and Canadian employees indicated Work-related stress as the top reason they would exit their current employer, yet employers thought that Base pay was the reason.

The issue of a misalignment between employers and employees expectations comes into focus when employers are attempting to attach and retain highly skilled and top performing workers. Even in the kind of economy that has existed for the last several years, top performers and highly skilled workers have other employment options. Since most progressive organizations build their reward systems around features which they believe are designed to attach and retain employees, this misalignment means that many employers have designed systems that have little value to employees. It is great that an organization has a noble mission, stellar reputation, strong development opportunities, and offers challenging work. However, what employees want is more substantive values such as employment security, good pay, health care, reduced commute time, and time off. Many of these employee desires appear to be rather utopian on the surface. With the two parties apparently so far apart, is there any way the two can reach their individual goals?

Job security: In this highly competitive and dynamic global economy employers do not have the ability to promise long term employment. However, employers do have the ability to manage they workforce to provide for mobility, allowing for the transfer of talent within the organization. And employees can ensure that they maintain the knowledge, skills, and abilities that their employers will demand now and in the future and if and when they need to seek other employment.

Base pay: Employers need to invest the technology resources in tracking market wages so that base pay is competitive, and not tied to antidotal perceptions. Employees need to recognize that Base pay is only one part of the total compensation equation and they, through adding economic value can have some control over their own wages.

Health care: Employers can do much to acquire and provide affordable health care. However, employees are ultimately responsible for reaching and maintaining a healthy lifestyle. Lack of exercise, smoking, obesity, excessive alcohol consumption, and improper diet are all significant contributors to many of today’s chronic illnesses. Ironically, employee participation in many employer provided preventative health and wellness programs is low.

Length of commute: Today’s technology allows many workers to work remotely form home or off-site. Yet many employers have not taken full advantage of such opportunities. Flexible starting and stopping hours, working remotely, and “hoteling” offer reduced expenses for both employers and employees.

Time off: Employers have the ability to reduce the importance of this issue with increased flexibility around when and where employees work. In addition, rather than providing separate “buckets” for sick time, vacation, and holidays; employers could consider a single allocation of time under a “paid time off” arrangement. Employees would be required to manage their time appropriately; however, they would have the flexibility to deal with work-life issues.

Employers must become better at understanding the expectations of employees and employees must become better at understanding that they have a role and a responsibility in this partnership.