Sue Shellenbarger in her weekly Work & Family column for the WSJ provided information about some innovative companies doing innovative things as it relates to expanding benefits.

Whether adoption benefits, scholarships for children of employees, back-up child care, or child-care centers, the reason for these improved work-life balance initiatives is simple:  During a time of layoffs, companies are already as lean as they can get.  When the economy rebounds, companies will need to ensure that their employees are ready, willing, and able to meet and exceed customer requirements.  If employers lose more workers during now, they will be ill-prepared when the business picks up.

Harvard Business Review published a study last year that showed that even small layoffs can have a devastating effect on workers.  Voluntary quit rates rose by nearly a third about previous layoffs, and many of these employees are difficult to replace.  Why?  Most employees who quit are smart enough to find another job before they jump ship.  They find a company who is willing to rent or buy their talents before they put in their two-week notice.

I believe the main challenge for the management of Compensation and Benefits for 2009 is how companies can encourage employee engagement and retention based on the limited options managers and owners have in a time of economic uncertainty. Companies around the world are struggling to remain competitive and viable as businesses react to the global economic meltdown. While companies in the US are freezing salaries, cutting bonuses, and laying off workers, they still depend on their employees to meet and exceed the expectations of customers.

I was honored to present the opening keynote at the 5th International Compensation and Benefits Conference recently in Mexico City. I proposed four distinct areas that companies in Mexico (and around the globe) could focus on in order to engage their employees during this time of crises:

Daily Satisfaction: Ensure that the skills and interests of the employee matches the job. Encourage positive relationships between employees and supervisors. Provide an environment of open, honest communication, especially as it relates to layoffs and terminations. Show respect for the work of all employees. Remember, employees quit a boss, not a company.

Training & Development: Assess needs and establish priorities for employee training and development. Make employee training and development part of an employee’s performance appraisal. Determine the ROI of individual training and development programs. Evaluate the outcomes of training, development, and other experiences? You have to train your employees to leave, or else they’ll leave.

Work-Life Balance: Explain the business case for work-life balance. Create approaches for employees to balance personal, family, and community obligations. Develop flexible work schedules and options. Monitor and evaluate the impact work/life balance initiatives on employee satisfaction, engagement, retention, and performance. If you force employees to choose between work and family, they will choose family nearly every time.

Rewards & Recognition: Reward performance through cash, non-cash, and other approaches. Recognize employee contributions to individuals, teams, and organizational achievements. Identify and reward employees who contribute to a high performance, meaningful work environment. 80 percent of rewards should go to the 20% of employees who contribute most to the success of the organization.

Companies that provide innovative solutions to the needs of their employees will benefit in the short term… and the long term.