Is Your Compensation Package Competitive?
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 wages. Paid time off, health benefits, even stock shares are all things that make up the benefits that attract and retain employees. Some industries, like business and finance, are going to be more competitive with compensation than others, such as nonprofits and healthcare. A compensation analysis helps employers gain an understanding of an appropriate compensation package to attract and retain key employees.
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, 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 often invest a lot of time and resources on employees that are not quite at the right level. Good employees will not stay long if they don’t feel valued and are not paid fair wages for their 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.
Your Employees are your Company’s Most Valuable Asset!
Who or what is the most valuable asset (MVA) of your company? Employees should be considered the MVA of every organization. Without MVA’s how will your company meet the needs and demands of your customers?
The importance of retaining your MVA’s and reducing turnover is recommended to be the highest priority for your company this upcoming year. You have most likely experienced throughout 2017, the challenges of finding and retaining top talent within your company. Determining why employees are leaving your company and what attracts employees to your company is important to determine. No different than gearing your marketing towards specific industries or segments.
Some recommendations for uncovering what makes your employees tick or be ticked off:
- Employee Onboarding – Evaluate the onboarding process you are currently using. Investing time with a new employee on their first day leaves a lasting impression.
- Compensation Analysis – Have a compensation analysis done for all positions within your organization. Due to the recession, many companies put a hold on performance evaluations and increases due to financial restraints. Coming out of the financial stresses, many businesses have reinstated the Performance Appraisal and Salary Increases. The challenge here is, the value of duties and responsibilities has changed since 2008 and offering a minimal increase following years of no increase and no communication about performance may be insulting to employees.
- Implement Stay Interviews – The exit interview is not the best time to find out what your company can do to keep employees from leaving, by then, it’s too late. It’s best to interview employees every 3-6 months to give them the opportunity to discuss what they like and don’t like about their current position, it gives the company time to address change and can help reduce employee turnover.
- Employee Surveys – Survey current employees to determine why they stay with your company and what will motivate them to make a move.
- Work-Life Balance – Evaluate the programs offered to employees to assist them with balancing work demands and life demands. Considering flexible work schedules and telecommuting are some options to consider.
- Culture – Is your work culture adaptable and acceptable to various generations throughout your workforce? Workplace Culture is the character and personality of your organization and is important for the organization as it directly impacts the ability to attract and retain talent.
- Diversity in the Workplace – Diversity is important because it introduces new ideas and adds to the workplace culture, it also increases employee morale and causes employees to work more effectively and efficiently.
- Mentors for Generational Gaps – In order for baby boomers to retire our millennials need to learn what makes “the other generations” stay with a company for extended periods of time. Who better to learn about work ethic, dedication, and respect from but our existing generation. Developing a mentoring program is a great tool to educate employees about work ethic and responsibilities while providing value to the baby boomers who don’t want to retire because they believe no one will respect the job and/or company like they do.
- Management Training – Promoting employees to management positions without providing them with the necessary tools and training is a recipe for disaster. Invest in helping your employees to be successful instead of leading them to think they are just filling a void.