How to apply REM in the Gig economy
Just like a rock band, touring from place to place, the ‘gig economy’ professionals jump from company to company, collecting meaningful experiences and developing their personal skills and values along the way. Gone are the days of people loyally working in one company for their whole life. Freelancers and job hoppers now rule the market. The driving force behind this trend is the Millennial generation (those born between 1982 – 2004), 77 million+ of which already make up the workforce.
According to Deloitte, Millennials will spend no longer than 16 months with any employer on average because of their insatiably high expectations of finding purpose in work and opportunities for dynamic career progression.
The gig economy gives Human Resource departments the unique challenge of managing the expectations of Millennials and communicating the purpose they desire to stay in a role. When it comes to remuneration reviews, a competitive pay is very important for Millennials, but it is not the only aspect that matters to them. Additional perks have to be present to keep them engaged at a company.
In addition to salary, what do Millennials want?
- Personal life balance
- Interesting, rewarding jobs
- Opportunities to learn new things
- Understanding on why they’re doing something
Engagement is essential for Millennials to want to stay at a particular company. Naturally, Millennials act as consumers when it comes to work, browsing for jobs that align their values and wishes. If they do not feel engaged in their current role, they have no issue moving elsewhere. However, if they work under someone who invests in their development and gives them opportunities to learn and grow, they are more likely to put down roots in that company.
These personal motivations are just one out of four key dimensions Human Resources should be using in their Remuneration process with Millennials (and all employees). The other three are:
- Remuneration Philosophy
- The Market – External Competitiveness
- Internal Equity
To learn more about using these four Rem process keys to build a strong employment offer and improve employee engagement, download the Pivot ebook ‘(don’t) show me the money’.