In the war for technical talent, the demand-supply gap has resulted in the ever-increasing cost of compensation and benefits packages in Thailand and the rest of the world. However, an Aon study discovered that most Thai companies are still not providing a rewards package that matches employee expectations.
Given that the growth of technology companies is closely tied to critical capabilities, it is essential for Thai companies to review their rewards package and include benefits that will help attract and retain talent.
Which are the most-sought-after skills and their salary premiums?
According to a study conducted by Radford, an Aon company, in 2018, the top five technical skills in the U.S. commanded a salary premium between 13.6% and 16.5%.
In Thailand, on top of these five hot skills, a 2018 Aon Total Compensation Measurement Survey found that employees with software development and data skills in the country also received a salary premium of 14% and 8% respectively.
Although compensation is an important factor for talent attraction and retention, it might not be the most feasible for companies without the deep pockets such as that of technology giants. HR departments should also consider the long-term impact of relying on salary premiums to attract and retain talent with valuable skills.
Is this skill required for short-term projects or long-term strategy?
Should an increase in compensation be based on an employee’s skill or performance?
What happens if the demand for these skills fall over time?
Will salary premiums cause internal inequality and affect the business in the long run?
With these questions answered, technology companies will be better equipped to design their rewards packages for long-term success.
Using benefits to enhance Employee Value Proposition
To control the soaring cost of salaries while still attracting and retaining technical talent, many leading technology companies around the world have turned to benefits.
Some technology companies in Thailand also provide free lunch or snacks like their global counterparts, as well as employee discounts and a pleasant office environment.
One interesting benefit worth noting is diversity programmes, a relatively new concept in Thailand. Generally, companies that embrace diversity treat all employees equally, regardless of their race, gender, social status or other backgrounds. Some companies have gone further by offering direct support, such as hormone allowance for transgenders or a disability-friendly office.
While these benefits are not the most extraordinary, nor the most expensive, they are highly valued because they support employees’ lifestyles, which allows them to be better engaged and happier at work.
Implementing benefits effectively
Companies that have made the decision to enhance their employee benefits package may have made the crucial first step – but they also need to understand that success starts with an implementation plan.
Here are five steps to help HR practitioners implement benefits effectively:
Contrary to popular belief, the war for talent is not won by offering the highest salaries. It’s won by valuing their skills, supporting their lifestyle, and engaging their passion.