6 days ago
6 Ways Companies Can Adapt Compensation For Today's Complex Workplace
The world of work has changed significantly in recent years, and the evolution is ongoing. The workforce has become more global, flexible and skills-focused, and economic factors, including inflation, supply chain challenges and more, are weighing on leaders' minds as they seek to balance innovation with financial restraint. Companies are rethinking and revamping their compensation strategies not only for these reasons, but also to address changing employee expectations, remote work and the growing competition for top talent across borders.
Modern strategies like performance-based incentives, lifestyle benefits and flexible pay structures are designed to reward impact while supporting employee well-being. To explore how companies are making these shifts work in real time, below, members of Forbes Human Resources Council share the innovative compensation approaches they're using to attract and retain top talent in a changing world.
1. Balance Fairness With Market Competitiveness
Our compensation strategy adapts to inflation and global talent competition by balancing fairness with market competitiveness. For example, we offer performance-linked incentives that reward impact and contribution, ensuring employees are motivated beyond fixed pay. This approach helps us recognize talent meaningfully while staying aligned with business goals and market realities. - Sourabh Deorah,
2. Expand Salary Ranges Through Remote Hiring
Remote working has allowed us to adjust our salaries—we've created a wider range to fit specific job families and role types. Historically, we would be limited to the specific local geography, but now we have an expanded market. This creates not only more options and a larger candidate pool, but also an expanded salary range. - Jake Zabkowicz, Hudson RPO
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3. Adopt A Skills-First, Location-Agnostic Pay Model
Our mantra is 'FAIR': flexible, agile, impact-driven and relevant. We've shifted to a skills-first, location-agnostic pay model, benchmarking compensation globally and linking it to role criticality, not geography. For example, we introduced retention-linked bonuses and mid-cycle corrections for niche tech roles to stay competitive and reward impact, not just tenure. - Ankita Singh, Relevance Lab
4. Introduce Lifestyle Spending Accounts
We introduced a lifestyle spending account to reframe compensation as care. It's not a perk; it's a proxy for trust. Instead of prescribing benefits, we fund what fuels people's lives—wellness, caregiving and creativity. That shift is helping us compete globally, retain top talent and sustain performance without sacrificing humanity. - Apryl Evans, USA for UNHCR
5. Align Incentives With Outcomes And Lifestyles
Our strategy has evolved to blend competitive base pay, performance-based equity and flexibility. Inflation, remote work and global competition have shifted the focus from just compensation to aligning incentives with outcomes and lifestyle, helping attract top talent in a global market. - William Stonehouse, Crawford Thomas Recruiting
6. Offer Total Rewards That Meet Real Employee Needs
The war for talent in top niches is ongoing. Now more than ever, employers are looking outside the box. An area of compensation that employers of choice should look into is total rewards perquisites, such as student loan repayment, tuition assistance, childcare discounts, remote work with annual reimbursement budgets for home office needs, and wellness programs. - Nakisha Dixon, Helios HR LLC
