A strong compensation strategy also involves ensuring managers can navigate talent challenges, according to a recent Fidelity study, especially as rising costs force employers to do more with less, the study said.
While competitive compensation “is the foundation of any job,” Fidelity said, managers are often the first point of contact for employees as they interact with an organization, and employees expect more support from their workplaces overall — not just in benefits, but in a “positive work environment,” according to the study.
A manager’s job is already difficult, Fidelity noted — and as other studies have shown. According to Fidelity’s report, managers are already responsible for:
- Establishing strategy
- Rethinking work
- Improving efficiency
- Onboarding teams
- Inspiring teams
But in recent times, managers are also increasingly responsible for managing “complex emotional challenges” of team members and designing work to maximize everyone’s satisfaction.
“Effective managers should have the ability to flex quickly between the strategic goals of the organization and the tactical tasks required of the team,” the report said. “Today it’s also important for managers to be capable of switching between analytical work and emotional support.”
More generally, employers need to assess what their workers want in total rewards via surveys and other employee listening tools, Fidelity said.
“A successful total rewards strategy is multifaceted and unique to the workforce it serves, so it’s important to consider all categories of rewards, including compensation, benefits, and elements of the employee experience, when developing your strategy,” the report said.
Those elements include the “must-haves,” like healthcare and paid time off and additional benefits like workplace flexibility and career mobility.
On top of these demands, employers need to be aware of manager burnout, which may hit especially hard in 2025.