No matter the size of your business, if you plan to hire employees, you should consider how your compensation plan can best attract and retain top-notch employees. Utilizing the expertise of a compensation consultant can help you compete with similar businesses and make working for your business more appealing.
Attract Talented Employees
One of the jobs of a compensation consultant is to guide you on compensation decisions based on what similar businesses are paying their employees. Knowing this information can help you attract more talented applicants and keep your salary and wages at a competitive rate. In addition to base compensation, you might want to offer bonuses, vacation days, and other incentives that are on par with or better than similar businesses. You should also consider how you will compensate employees that bring additional skills. For example, you may not require applicants to be fluent in multiple languages or have advanced computer skills, but offering additional incentives may attract those applicants.
Improve Employee Retention
Although the business environment is important for retaining qualified employees, how you compensate your employees is also important. Keeping the base compensation at a competitive rate is critical for retaining your employees, but you also need to consider ways to continuously compensate employees. A compensation consultant can help you determine how to best incentivize employees for their service.
You may want to implement yearly pay increases for certain positions or a pay increase for every five years of service. This can be a method of acknowledging your gratitude towards employees who have seniority at your business. Newer employees may be more likely to stay with the same business if their hard work and loyalty is rewarded. The idea of growth, not only in work responsibilities, but also pay is often important to employees who want a career path, instead of just another job.
Balance Short-Term And Long-Term Compensation
Attracting talented employees and retaining them through your compensation plan is often a balancing act. Hiring a compensation consultant can help you achieve the best middle-ground for your business. Since any form of financial compensation is a business expenditure, you need to decide the best method of issuing compensation without an unreasonable impact on business revenue. You also need to decide how short-term compensation, such as employee salary and wages, can have long-term consequences for your business.
It may be tempting to offer employees a much larger salary or wage than your competitors to make your offer more appealing, but if your employees have to take a pay cut in the next year or two, this can have long-term ramifications on your employee loyalty and trust in your business. Offering an average base compensation with incremental bonuses may not be as attractive to some applicants as a higher base income, but there is a bright side. You may attract talented applicants who are more invested in the long-term potential of the business and their career as a whole. They are more willing to take an average salary with better long-term potential than short-term benefits.
Integrate Alternative Compensation Methods
You may not have considered the benefits of alternative methods of compensation or may not be sure if they would be useful in your business. Some employees are attracted to educational benefits, which can also be used to enhance your business. For example, if there are many opportunities for promotion within your business, you should consider offering discounts or free education that is directly related to promotions. You might want to offer a certain amount of credits per year at a reduced rate, depending on an employee's seniority within your business. Opening the door to increased education and training as a gateway to promotions is another method your business might use to improve employee motivation and retention.
It is difficult to develop employee compensation packages without having a thorough understanding of the market and what your business can reasonably afford. With the assistance of a consultant, such as those at Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc., you can attract better applicants while improving employee retention and motivation.Share
22 August 2016
Hi everyone, I’m Bonita King. Welcome to my website about building a competent team for your business. I have always enjoyed takin a close look at how companies structure their workforce. The layers of managers and project leads help keep the company running smoothly. Hiring skilled, dedicated workers to complete each particular task also ensures the company will remain successful for the foreseeable future. I want to use this site to explore all of the different ways you can create an excellent team of workers. Please feel free to visit my site often to learn all you can about this subject. Thank you for visiting.