Talent Compensation & Benefits
With only 25% of employees believing they are being compensated fairly for their contribution in the workplace it seems fair to state that businesses need to give attention to their Talent Compensation & Benefit policies which is component 5 of 11 in our Talent Acquisition and Retention Strategy (TARS).
When it comes to talent compensation and benefits, it is crucial to prioritise employee satisfaction without solely relying on their love for work, remembering that whilst our top talent loves to work, they don’t work for love.
Still too many employers tend to compensate their employees with the bare minimum as a cost saving effort, but this approach compromises other aspects of their business, such as productivity, employee retention, and the company's employer brand. On the other hand, proper compensation not only makes employees feel valued but also enhances their performance, as they are motivated to work in the best interests of the business, often becoming strong advocates for it. So, how can you ensure that you are compensating your employees correctly?
You can adopt this 1-2-3 approach:
During the hiring process, engage in an honest conversation with candidates about their compensation expectations.
It is essential to note that 80% of employees prefer a balance between compensation and benefits, keeping in mind that different generations may have varying preferences regarding the compensation-to-benefits ratio. With this in mind I recommend you avoid implementing a one-size-fits-all policy.
During the hiring process, it is also important to discuss when a compensation package review can be expected and to provide insight into what a review may look like.
Remember, while it is fair to remunerate employees based on their current value, hiring them also involves recognising their potential for growth and development and so their compensation package should reflect this expectation.Conduct thorough market research to understand what other comparable businesses are paying and to determine current, acceptable market compensation rate ranges.
Another method of market research which you may find surprising is to encourage your teams to engage in conversations with recruiters when they are approached about potential opportunities. This enables them to report back to you so you can keep updated on market trends and have meaningful conversations with your employees about their compensation packages and their satisfaction levels.Emphasise transparency and equity in compensation practices. Surveys indicate that 70% of employees desire income transparency, while 67% expect equity.
Embracing this approach has its pros and cons so it should be strategically planned and implemented seeking professional guidance as required.
By following this 1-2-3 approach, you can start building a foundation to have important conversations around compensation and benefits within your employees, promoting employee experience satisfaction, engagement, and retention and contributing to improved talent acquisition rates.
If you would benefit from a conversation around this topic, I would be happy to have one with you. I look forward to helping you.
Reach out to us today at:
027 647 5000 | kayleen@ripple.net.nz