The post-pandemic Great Resignation trend was an eye-opener for HR leaders. Many enterprises focused solely on ‘what’ they offered in their employee value proposition (EVP). This traditional approach overemphasised financial components as it did not embody the ‘why’ essential for designing a wholesome EVP. Emotional salary has emerged as the chief differentiator among organisations that displayed extraordinary resilience during the talent war in the last 2 years.
Emotional salary refers to the nonfinancial, emotional rewards that employees receive from their work, such as a sense of purpose, belonging, autonomy and personal and professional growth.
Let’s discuss in detail-
The Power of Emotional Salary for Engagement
Employee engagement indicates how actively the employee is involved in advancing organisational goals. Your organisation’s overall employee experience (EX) determines the levels of employee engagement.
As the power balance tilts from employers towards employees, the latter’s mindset transitions towards more human-centred interactions.
Employees are now better aware of the experience they expect from their company. Emotional salary is in the front seat driving this experience. Hence it has also evolved as the number one factor determining employee engagement.
Showcasing emotional salary in your employer brand and recruitment process is essential to attract top talent. Strategizing and implementing related best practices is equally important to engage your existing employees. Here is a primer.
Emotional Salary as a Talent Magnet
Your recruitment processes must offer a first-hand experience of the emotional salary they can expect after joining.
1. Embrace Virtual Hiring to Signal a Modern Work Environment
An automated hiring process signals an efficient and autonomous work environment to the candidate. Consider giving candidates a virtual tour to showcase the workplace and company culture. It can help candidates visualise themselves in the role and better understand the emotional salary they can expect.
2. Incorporate Emotional Salary Elements into the Interview Process
During the interview process, incorporate elements that showcase the potential emotional salary. For example, you can highlight work-life balance policies and employee recognition programs.
Per a recent Gallup poll, 61% of candidates cited work-life balance and better personal well-being as crucial factors when deciding whether to accept a job offer.
3. Encourage Employee Referrals
When employees refer their friends or family members to the organisation, it is a sign that they are satisfied with their job and the emotional salary they are receiving. It sends a positive message to potential candidates that the organisation is a good workplace.
Building an Employer Brand with Emotional Salary
You can showcase the potential emotional salary to applicants in several ways.
1. Sharing Employee Stories
Highlighting employee experiences can showcase recognition, growth opportunities and a positive work environment. Organisations can share positive employee feedback and testimonials to demonstrate that they value employee opinions.
2. Highlighting Company Culture
Organisations can showcase their culture and values by sharing pictures and stories of company events, team-building activities and volunteer opportunities. It helps potential employees understand what it is like to work for the organisation.
3. Showcasing Community Impact
Organisations can highlight their impact on the community to showcase their purpose and meaning beyond profits. It can include partnerships with nonprofits, volunteer work and sustainability initiatives.
4. Emphasising Diversity and Inclusion
Employees want to work in an environment that is inclusive and respectful of all individuals. Organisations can showcase their commitment to diversity and inclusion by highlighting these policies and programs in their employer branding.
Leadership’s Role in Delivering Emotional Salary
The responsibility of putting the spotlight on emotional salary aspects lies with top leadership.
1. Lead with Empathy and Emotional Intelligence
This could mean showing empathy towards employees going through a difficult time, being mindful of employees’ workloads and stress levels, or practising active listening during meetings. For instance, a leader who offers flexible work arrangements to an employee going through a personal crisis can help them feel supported and valued.
2. Leverage Data Analytics
HR Leaders must also remember that emotional salary means different things to different employees and can change with time. Conduct surveys and focus groups to gather data on employees’ perceptions of the emotional salary they receive from their jobs. You must also review turnover, referral and retention rates and identify patterns to determine areas needing improvement.
3. Align Company Values with Emotional Salary Drivers
The top leadership must define what the organisation stands for and the values it holds dear while making day-to-day decisions. The organisational values should align with the drivers of emotional salary. For instance, you can foster a culture of autonomy, creativity and innovation by encouraging employees for internal, cross-functional redeployments.
Implementing Emotional Salary Best Practices
Here are some practical pointers to enhance the emotional salary in your organisation.
1. Prioritise Effective Communication
Schedule regular one-on-one meetings with employees to listen to their concerns and feedback. Create an open-door policy where employees feel comfortable approaching you with their ideas or providing regular updates on company goals and initiatives. For example, a manager who sends weekly emails to their team outlining accomplishments and what is coming up can help employees feel informed and included in the company’s progress.
2. Provide Professional Development Opportunities
Organisations must offer internal transfers, paid training programs, mentoring opportunities and access to resources that help employees learn and grow.
A 2022 Gartner survey of more than 3,300 employees revealed that 3 in 4 employees looking for a new role are looking externally first, not internally.
3. Recognize and Reward Effort and Achievements
Offer bonuses, promotions, time off or public recognition for a well-done job. For example, a manager who takes the time to write a personal thank-you note to an employee who exceeded expectations on a project can make them feel valued and appreciated.
4. Foster a Positive Work Environment
Create a culture emphasising teamwork, collaboration and inclusivity. For example, a company that provides opportunities for employees to participate in team-building activities or volunteer events can help foster a sense of community and belonging.
A persistent focus on the changing trends in employee perceptions will help you stay ahead of the curve in emotional salary initiatives.