Business View Magazine | Volume 8, Issue 6

17 BUSINESS VIEW MAGAZINE VOLUME 8, ISSUE 6 I n the changing world of work, compensation needs to keep up. With sustainability and equal rights on societies agenda, companies are under serious scrutiny to meet basic standards of pay. Research conducted by Deloitte showed that 64 percent of respondents expected their organizations to redesign compensation yet again either this year or in the next three years. Is this a pandemic driven change or simply a natural change that has been catalysed by the changing nature of the world? High cost, less time attributed Labor costs accounts for 70 percent of expenditure , yet HR professionals only spend 15 percent of their time on it. With HR professionals wanting to develop their workforce, attract the best talent and ensure career growth, revisiting compensation and benefit strategies regularly is an area missed out on. While budgets are tight and restrictive, perhaps cost cutting is active, reducing salaries and related benefits can cost you people. In turn, this will end up costing you more over time as hiring and new demands for good talent require extra funds, as well as a potential lapse for business output. Compensation for equality Various studies of women , conducted across the U.S. have shown that victims of compensation inequality are twice as likely to be depressed as those adequately compensated. While money doesn’t equal happiness, financial freedom, adequate medical insurance and enough money to live on all contribute to overall better health. The lead author of a study by Columbia University said, “If women internalize these negative experiences as individual-level issues, rather than the result of structural Aligning Compensation Strategies to the NewWorld of Work