VOSA is uniquely designed to target*
on VOSA Investment over 1-2 years
*Actual results may vary
What makes VOSA (Value of Service Award) so Uniquely Effective?
Compensation was traditionally considered a type of Rational Attachment. As such, compensation has been ignored in employee retention and engagement discussions.
VOSA was the first and so far the only organization to successfully challenge this long-standing stereotype, highlighting aspects of compensation, that have a powerful emotional relevance for employees.
We designed the Value of Service Award to act as the “missing link” – a cost-neutral incremental compensation plan, specifically designed to bring pay fairness, inclusion, equality and equity to every workplace, and with that solicit a powerful Emotional Attachment from employees across all organizations and regions, boosting employee retention and engagement to previously unheard-of levels.
- 70% of US workforce are disengaged.
- 87% of global workforce are disengaged.
- Disengaged employees are 14% less productive and bring 18% lower sales than engaged employees.
(All statistics provided by Gallup)
The Great Resignation
- Most companies today operate with a 10-20% attrition rate.
- Replacement hiring costs are estimated between 0.6x-2.5x* of annual compensation.
- A company with a 10% attrition rate is dealing with up to a 25% inefficiency each year.
*“The High Cost of Low Wages” by Wayne F. Cascio
- Talent demand exceeded talent supply for the first time in decades right before the pandemic.
- Pandemic exacerbated the gap with many leaving the workforce (Great Resignation).
- Experts agree that since 2022 talent shortage entered a chronic phase, with the gap expected to double by 2030.
- Companies must prepare for a ZERO talent pipeline.
Compensation plays little role in Employee Retention
- In 2022 “Inadequate Compensation” was deemed the #1 cause of Attrition by SHRM, and “Fair Compensation” was deemed the #1 cause of Retention by PwC.
- 67% Of HR professionals believe that compensation needs to be increased by 8-20%.
- How pay increases are implemented is more important than “how much” they are – it is not all about the money, but it is about making sure that pay policies recognize and fairly reward the true employee value.
The workforce challenges are temporary
- While pandemic response exacerbated the underlying workforce trends, the challenges are neither new nor temporary.
- With 30% of new hires quitting within the first 90 days, and millions retiring early, the Great Resignation combines the older employees who are “giving up” on work, and the younger employees unwilling to offer unconditional loyalty. This is now a generational challenge.
- Disengagement in the workplace has been extremely high at ~70% in US and ~90% globally since Gallup started collecting such data about 20 years ago. Clearly nothing we tried so far has worked.
- With “Social Media Influencer” being the #1 career choice for the Millennials in 2022, it is no wonder that our essential and traditional professions are facing severe talent shortages. This will continue unless we make productive work rewarding again.
We can overcome our workforce and socio-economic challenges with the same mindset and practices that created them
- A mentality shift as well as new tools, especially when it comes to employee compensation, are needed.
VOSA analyzed the root causes of the Income Inequality and the Workforce Crises, and boiled them down to three critical gaps in our workplace practices and employee relations, which hold the keys to solving both. VOSA Solutions elegantly, seamlessly and effectively address these gaps to unleash the full productive potential of the company’s workforce, maximizing company’s long-term, sustainable growth and profitability.
Meaningful employee participation in the success of the enterprise.
This gap includes such notions as the “Loyalty Tax” and “Up or Out” mentality. Traditional compensation policies lack a consistent, fair, and meaningful mechanism to recognize and reward the “Human side” of the employees who stay in their roles or move laterally. There is significant value to the employers that comes from their experienced, proven, long-term employees, including the value of proven loyalty, reliability, commitment, other desirable human character traits (“the Values”), as well accumulating and often very substantial institutional, company-specific knowledge.
Our words tend to differ from our actions, especially when it comes to highly publicized yet rarely justified mass layoff decisions (except in cases of financial distress or major structural changes). While the risk of being fired for poor behavior or performance is part of our social contract, indiscriminate layoffs in response to temporary financial pressures is a practice that betrays loyal, committed employees and wreaks havoc on corporate culture and morale for those who remain and are forced to pick up more work (without more compensation) while they grieve the lost connections.
1. Introductory Meeting
We begin with a free introductory meeting to better understand your challenges and objectives and see if VOSA may be able to help.
2. VOSA Assessment
We offer a “no obligation” VOSA Assessment, customized for your organization, performed by combining our proprietary methodology with in-depth practical analysis from our team of experts.
3. Results and Decision
We present to you the results of the VOSA Assessment, including our key observations and recommendations, as well as the costs and benefits (and VOSA ROIs) of all relevant VOSA products and services. You then decide whether to engage VOSA to design, implement and certify any of our recommendations.
The Results for your Organization
Without VOSA, the best results of other measures per Gallup’s own consulting practice top out at 30% disengagement. VOSA can close that gap to 90-100% for such good, well-run companies.
Reduce Undesired Attrition
VOSA aims to reduce undesired attrition to near-zero over the 3-5 years after implementation (retaining even those who planned to retire), and normalize into a 3-5% natural attrition rate, that can be meaningfully replenished from the bottom up.
Reduce the Need for Replacement Hiring
VOSA will reduce the need for replacement hiring to almost zero, allowing companies to focus on strategic hires and internal promotions and trainings and recruitment of the best graduates talents
Boost Employer Branding
Attain the “Employer of Choice” status with the distinctive VOSA Certification and recruit top candidates from the shrinking talent pool.
Win Back Former Employees
VOSA has a unique design feature that allows companies to easily “win back” great former employees and fill their open roles quickly
Promote Equality, Equity and Inclusion
VOSA is designed to be 100% inclusive with economically relevant and justified elements of pay equality and pay equity
Move Past “Up or Out” Mentality
VOSA is normalizing the mentality that people should be supported and encouraged to stay in roles they are most happy and productive in, instead of associating pay increase with promotions or job changes.
This change in mentality, coupled with better retention and engagement, given companies a lot more time and money to focus on promoting the right people for Manager and Leadership roles, and properly supporting those promotions with resources such as training
Narrow Pay Gaps
VOSA is designed to narrow gender and racial pay gaps from the bottom up without discrimination or social engineering
Improve Financial Agility
VOSA shifts compensation focus from salary increases to employee profit-sharing, which provides much greater financial flexibility for the VOSA clients compared to others who are stuck between a rock and a hard place trying and failing to juggle the cost of living increases with attempts to keep fixed compensation costs from spiraling out of control. Employee profit-sharing is the right compromise that also best aligns employer interests and rewards with those of employees.