Provide a different perspective on why you think the compensation method or strategy your colleague selected will or will not appeal to a diverse workforce.

One nontraditional compensation strategy that holds strong appeal for a diverse workforce is offering flexible work arrangements, particularly a result-only work environment (ROWE). In a ROWE, employees are evaluated strictly on performance outcomes rather than hours worked or physical presence. This approach allows employees to work when and where they are most productive, provided they meet their goals and deadlines. For a workforce that includes working parents, caregivers, neurodiverse individuals, or those with lengthy commutes, this flexibility can outweigh a slightly lower salary. According to Thompson and Ressler (2013), creators of the ROWE model, companies adopting this strategy often see improvements in productivity, engagement, and retention.

As an HR professional, I would present data to leadership demonstrating that flexible work strategies lead to tangible business benefits. This includes reduced turnover, increased productivity, and improved employee morale. I would highlight studies from reputable sources, such as Gallup or SHRM, which show that employees with flexible schedules report higher levels of job satisfaction and loyalty. Additionally, by lowering real estate and utilities costs through remote or hybrid arrangements, organizations can offset some of the salary deficits in their budgets.

To implement this strategy effectively, I would ensure clear communication of expectations and provide training for managers on results-focused leadership. For early-career employees, I might include optional mentorship programs or scheduled check-ins to foster development in the absence of daily in-person interactions. For older or more experienced employees, the autonomy of a ROWE could be emphasized as a mark of trust and respect for their expertise. Tailoring communication and support based on career stage, cultural expectations, and personal responsibilities ensures inclusivity and maximizes appeal across a broad demographic.