Now more than ever, employers are feeling the strain of finding and hiring the right people. With the recent changes in salary and wage regulations, businesses are being forced to review how their positions are classified and compensated. Perfect time to conduct a compensation analysis! A company-wide compensation analysis may sound like a lot of effort, but it’s a good practice for employers to periodically review all positions throughout their organization. This helps ensure they are offering competitive wages for attracting and retaining employees.
More than Money
Compensation isn’t just about money. Paid time off, health benefits, even stock shares are all things that make up the benefits that attract and retain employees. Obviously, some industries, like business and finance, are going to be more concerned about monetary compensation than others, such as nonprofits and healthcare. Different industries lend themselves to higher rates of pay and compensation, and that’s understood.
Many think that money is the biggest factor in employee retention, but that simply isn’t the case. While wages and hours worked are crucial to an employee’s happiness, about 88% of employees leave for reasons beyond the paycheck. Making sure employees feel valued, appreciated, and taken care of is essential to keeping them happy in their jobs.
Finding the balance between competitive wages and benefits and proper compensation for the value of an employee’s work is hard to do. When good workers feel valued for their work, they are more likely to stay. If they don’t, high qualifying jobs go to less qualified, lower quality workers. Employers could end up spending too much money on employees that are not quite at the right level. And good employees will not stay long if the job isn’t worth the work.
Compensation Analysis as a Retention Tool
An annual or bi-annual compensation analysis, which incorporates salary surveys and salary benchmarking, is an invaluable retention tool. This will help show if your company is paying its employees fair and competitive wages, while taking into consideration the responsibilities they are carrying out.
Compensation Analysis Services
A thorough compensation analysis helps you attract, retain and engage the best people in the most cost-effective way possible. Not sure where to start? Contact the professionals at HR Synergy today.