In today’s employment market, companies are finding it harder and harder to attract and retain top talent. Those in the job market are demanding more money, and if your company’s compensation structure is not competitive, which means being in the 75th percentile or above in benchmarking, you are possibly in danger of losing your greatest talent to competitors.
So, how can we as employers ensure that our Company is in line with employee and prospective candidate expectations? Below are a few tips from EctoHR, Inc.:
- Run Benchmarking Reports – The fastest and simplest way to make sure your employees are being compensated fairly is to run a benchmarking report. These give an estimate of what the salary range for each position is on the open market. EctoHR uses PayScale, and there are numerous other (free!) resources out there for your HR team to utilize.
- Utilize an Incentive or Bonus Structure – Whether an individual or team-based structure, EctoHR has found that when employees have a specific goal or incentive to work toward, it fosters teamwork, focus, and results. This is also an excellent way of tying an employee’s interests to the Company’s interests. It does not need to be a significant dollar amount or an elaborate grand prize, but allows for constant communication on employee performance, and keeps team morale high when goals are met with a reward. Some examples of incentives are: a free day of PTO, a pair of tickets to a sporting event, a team-sponsored lunch, or a spa treatment!
- Don’t Try to Cut Corners – Commonly, the most successful owners and executives are those that see beyond the numbers and recognize when top talent has a greater impact on an organization. This does not necessarily mean paying in the 90th percentile, but failing to give due raises and promotions or low balling candidates for open positions leads to negative results and poor employee morale.
- Don’t Settle (Think Long-Term!) – In today’s market, it is easy to settle for the first promising candidate that applies for an open position or even the least expensive one. While this is beneficial in the short-term (filling a vacant need and saving money!), it is imperative to ensure your next hire aligns with your long-term vision. The time and money invested into training a new hire is drastic if turnover rates are high.
The most significant thing to remember is that for many companies, the most important asset is people. Without great people, the rate of success drops dramatically. Investing in top talent is a great place to start when creating or updating a company’s Vision or Mission.
EctoHR is here to help! If you have questions on how to make your company’s compensation structure competitive, or want to make sure you are in line with the employment market, contact us at 810.534.0170 or colleen@172.81.118.1!