• The pan­dem­ic and job mar­ket have made it dif­fi­cult for employ­ers to attract and retain tal­ent, neg­a­tive­ly impact­ing oper­a­tions and prof­itabil­i­ty.
  • Mineral’s Healthy HR frame­work shows you what com­pa­nies with high pro­duc­tiv­i­ty, morale, and engage­ment have in com­mon.
  • The Healthy HR frame­work is built on per­form­ing well on all four of the fol­low­ing pil­lars: thought­ful com­pen­sa­tion and ben­e­fits, good work-life bal­ance, the poten­tial for career growth, and appro­pri­ate work­load.
  • On aver­age, 70% of orga­ni­za­tions are research­ing com­peti­tors and look­ing to improve their com­pen­sa­tion pack­ages to attract and keep talent.

These past few years have been any­thing but “busi­ness as usu­al.” From lock­downs to res­ig­na­tions, new vari­ants and eco­nom­ic uncer­tain­ty, com­pa­nies have been forced to nav­i­gate these chal­lenges with no roadmap. While com­pa­nies had to take their own path, some have fad­ed, oth­ers sur­vived, and a few – inter­est­ing­ly – even thrived.

But could account for these dif­fer­ences in out­come? We want­ed to do a deep dive to find out.

In Feb­ru­ary 2022, Min­er­al sur­veyed 2,644 senior HR pro­fes­sion­als in the Unit­ed States. We sought to uncov­er what busi­ness­es with high per­for­mance dur­ing the pan­dem­ic had in com­mon with respect to what their HR depart­ments chose to pri­or­i­tize. Our study indi­cates that rev­enue and pro­duc­tiv­i­ty gains are tied to employ­ee morale. How well a com­pa­ny treats its employ­ees cor­re­sponds to its abil­i­ty to attain busi­ness growth. We trans­lat­ed our data into a frame­work to help busi­ness­es like yours unlock the con­nec­tion between strong employ­ee morale and increased rev­enue and pro­duc­tiv­i­ty. We call this frame­work Healthy HR.

The Healthy HR Framework

Com­pa­nies that grew in both rev­enue and pro­duc­tiv­i­ty had four things in com­mon. These four indi­ca­tors, which are all tied to employ­ee morale, make up what we call Healthy HR. These indi­ca­tors are:

  • Thought­ful compensation
  • Good work-life balance
  • Poten­tial for career growth
  • Appro­pri­ate workload

Based on how well orga­ni­za­tions per­form in these areas, they are rat­ed as either Weak, Aver­age, or Strong. Weak orga­ni­za­tions do not per­form well in any cat­e­go­ry, while Strong busi­ness­es do well in all four. Our results found, unsur­pris­ing­ly, that Strong orga­ni­za­tions are most like­ly to suc­ceed in increas­ing pro­duc­tiv­i­ty and rev­enue even when faced with macro-envi­ron­ment challenges.

But the amount of busi­ness val­ue Strong orga­ni­za­tions received did may sur­prise you! Strong orga­ni­za­tions saw real, impact­ful improve­ments to their bot­tom line – and in more places than just the bot­tom line. Our study found that 68% of Strong per­form­ers saw an increase in employ­ee morale, despite the chal­lenges of the pan­dem­ic. Weak orga­ni­za­tions, on the oth­er hand, iden­ti­fied a 13% decrease in employ­ee morale.

Healthy HR doesn’t just hap­pen, how­ev­er. It requires a cul­ture of invest­ment in HR and proac­tive efforts.

Here is what our State of HR sur­vey found on how Strong com­pa­nies per­form in the Thought­ful Com­pen­sa­tion and Ben­e­fits cat­e­go­ry and how you can imi­tate their success.

How Strong Healthy HR Companies Package Thoughtful Compensation & Benefits

Pay has always been one of the most impor­tant fac­tors for employ­ees. How­ev­er, salary isn’t the only com­po­nent of com­pen­sa­tion. Health ben­e­fits, paid time off, and bonus­es also make up the total com­pen­sa­tion pack­age. But how are strong Healthy HR com­pa­nies adjust­ing their com­pen­sa­tion and ben­e­fits packages?

We found that rough­ly 60% of small orga­ni­za­tions offer flex­i­ble remote and hybrid work options and proac­tive­ly review mar­ket wages to update their com­pen­sa­tion. This small busi­ness move­ment is mir­rored by over 75% of large orga­ni­za­tions doing the same.

Strong com­pa­nies are broad­ly putting efforts toward meet­ing their employ­ees’ com­pen­sa­tion and ben­e­fits expec­ta­tions. Our sur­vey found that:

  • 76% proac­tive­ly review mar­ket wages and update inter­nal targets
  • 75% con­sid­er employ­ee qual­i­ty of life dur­ing com­pen­sa­tion decisions
  • 73% offer very flex­i­ble work­ing hours with all employees
  • 70% offer flex­i­ble remote and hybrid work options
  • 64% tai­lor ben­e­fits pack­ages to spe­cif­ic employ­ee situations

Strong Healthy HR orga­ni­za­tions are more than 10 times more like­ly to tai­lor ben­e­fits to spe­cif­ic employ­ee sit­u­a­tions than weak orga­ni­za­tions. This can include offer­ing adjust­ed work­ing hours to accom­mo­date fam­i­ly needs or pro­vid­ing addi­tion­al time off to employ­ees that need it. Employ­ers in this job-seek­ers mar­ket are adjust­ing to their com­pen­sa­tion prac­tices. Is yours keep­ing pace?

What Your Organization Should Do

Not every orga­ni­za­tion is able to increase employ­ee com­pen­sa­tion or pro­vide new ben­e­fits. Some­times there are bud­get lim­i­ta­tions. At oth­er times, recruit­ing and staffing could be pain points that lim­it growth. Fur­ther, not every com­pa­ny can take advan­tage of every ben­e­fit (some orga­ni­za­tions, like ser­vices and restau­rants, always require in-house staff). How­ev­er, proac­tive steps toward Healthy HR can begin even with small steps.

Whether you’re a grow­ing orga­ni­za­tion with lit­tle to no funds avail­able to alter your com­pen­sa­tion or ben­e­fits, or need out­side the box think­ing, here are some ways to enhance your com­pen­sa­tion practices:

  • Be aware of trend­ing ben­e­fits for both your employ­ees, loca­tion, and industry
  • Con­sid­er polling employ­ees on the type of ben­e­fits that inter­est them
  • Offer one unique ben­e­fit that ties in with your cul­ture and values 
    • Exam­ples include stipends to sup­port small busi­ness­es, allow bereave­ment peri­ods for the loss of a pet, charge accounts for snacks or cof­fee at employ­ees’ favorite gas sta­tions, recess time, blue light lens glass­es, game tick­ets, or vouch­ers for spas and massages
  • Estab­lish guide­lines around how and when the com­pa­ny dis­cuss­es pay and ben­e­fits with job can­di­dates and employees
  • Track uti­liza­tion rates of your cur­rent offered benefits

Anoth­er key aspect for help­ing orga­ni­za­tions improve in Healthy HR: focus­ing on men­tal health. We found in our research that every Strong orga­ni­za­tion placed a height­ened focus on employ­ees’ men­tal health. Strong pos­ture com­pa­nies were 11x more like­ly to pri­or­i­tize this and tried to sup­port it through the pil­lars of Healthy HR – includ­ing thought­ful com­pen­sa­tion and ben­e­fits. From fos­ter­ing a cul­ture around well­ness (71%) to revis­ing pro­ce­dures to empow­er man­agers and super­vi­sors to check in (68%), pro­mot­ing men­tal well­ness through the com­pen­sa­tion pil­lar could hold the key to ele­vat­ing your organization’s Healthy HR standing.

The job mar­ket and pan­dem­ic have forced many com­pa­nies into a reac­tive pos­ture. But orga­ni­za­tions with Healthy HR show­cased their resilience, agili­ty, and endurance. As it’s always a mat­ter of when – not if – the next cri­sis will impact your orga­ni­za­tion, our research has revealed that a sure­fire way to with­stand it is by proac­tive­ly invest­ing in Healthy HR.

By Alexan­der Lahargoue

Orig­i­nal­ly post­ed on Min­er­al