Current Employment Trends and Their Implications for Business, Society, and Individuals
Changing Nature of Work and the Trends in Employment The world of work is changing. Part Time and Freelance employment has grown whereas stable and secure jobs that last an employee’s lifetime in one organization are scarce. If the Baby Boomers were expected to work all their lives in at most two or three jobs, […]
Current State of Employer Branding
Welcome to the talent economy! With the changing perception of organizations and increasing appreciation for talent, it won’t be wrong saying that we have transported into the talent economy. Though the shift has been taking place for many decades, the last decade, however, altered the scenario seemingly in the blink of the eye. The C-suite […]
Current Trends in Talent Management
If you ask me for the guidelines for talent management, my response would be the following: Developing employees. Redeploying employees. Retaining the best talent. Yes, the prime focus of talent management is enabling and developing people, since the quality of an organization is determined by the people it employs and has onboard. After hiring and […]
Cost Benefit Analysis for Training
As discussed in previous articles, it is very important to evaluate the benefits of the training and be able to put that in terms of numbers. Training comes at a cost and therefore any organisation would be interested in knowing the return on investment (ROI). Organisations use different methods to assess the benefits of training […]
Creativity and Entrepreneurship
Individuals who are creative love to do things differently. They seldom blindly follow what others have done in the past but believe in creating their own concepts and ideas. Creativity and entrepreneurship go hand in hand. Let us first go through a case study: John was working with ABC industries as sales executive. His role […]
The previous articles in this module discussed how companies must be cognizant of the market trends when deciding on compensation and nonmonetary rewards. This is especially the case when premium talent has to be rewarded.
Since top quality talent would migrate to the companies where they are rewarded adequately, so companies in order to retain them must make market rate surveys and engaged in research of the reward structures in other companies in the same industry.
Further, even to retain the other talent, companies must research the minimum market rates for hiring employees so that they can base their compensation policies accordingly.
The key theme here is that in order to be competitive companies must gauge the mood of the market as well as understand how their competitors are paying and the kinds of reward systems in place there. This is especially the case with the IT Industry where the competition for talent and top quality talent is intense.
Many companies in the emerging markets like India, China, and Brazil conduct market rate research to understand how global companies are paying their employees. Since these emerging market companies want to emulate and imitate the pay structures of the multinationals, they often benchmark their reward systems against these companies.
In India, many companies like Infosys and Wipro have set their compensation strategies after researching the strategies of multinationals and though the base pay is much lower, they follow the broad components of the pay structure.
Further, with many multinationals like Fidelity following global and world-class norms in nonmonetary and monetary reward systems, they are the examples and the role models for other companies to follow suit. In this manner, the entry of global companies is indeed a positive development in terms of the reward systems.
The way in which companies undertake market rate research is by hiring market research consulting companies to perform a salary survey and to find out each year how much hikes the other companies are handing out.
By engaging the services of these firms, companies would know the industry trends and would ensure that they are not behind or too much above the industry norms.
In the context of the ongoing global economic crisis, it has become more necessary than ever to conduct market rate research as companies must know the industry standard for the hikes and then base their annual increments accordingly. These are some of the practices that companies resort to when deciding on the quantum of hikes and pay increases every year.
Finally, as in business terms, the companies have to be competitive in terms of salary hikes and reward systems as well. Hence, there is a compelling need to understand the industry trends and base one’s compensation system accordingly.
As mentioned earlier, only those companies that manage to be competitive are among the most preferred employers where top quality talent migrates.
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Current Employment Trends and Their Implications for Business, Society, and Individuals
February 12, 2025
Current State of Employer Branding
February 12, 2025
Current Trends in Talent Management
February 12, 2025
