If you’re looking for ways to improve your compensation strategy, start by acknowledging that compensation has changed. Compensation has become more data-driven, more transparent, and more tied to performance.
Years ago, a college graduate had a long-term future and a pension plan with a single company to look forward to. The days was measured by hours in the office, sometimes by clocking in and clocking out. Nowadays, people change jobs more frequently and more jobs are measured by performance. In modern times, working professionals are seeking greater pay transparency as well as total rewards that are outside of traditional salaries and retirement perks. To meet employee expectations, forward-thinking organizations need to build out a compensation strategy that’s based on the goals of the business and acts as the foundation for communications with employees about pay.
Offering More Than Just a Paycheck
As a growing organization, it makes sense to improve your compensation strategy. Why? Your business needs to retain the best employees who can innovate and lead your company in the industry. Secondly, in order to retain high performance employees, you should be offering more than just a competitive base salary. Employees are increasingly expecting bonuses and other forms of variable pay, indirect compensation, and non-monetary compensation incentives. Being clear about what your company offers can go a long way towards creating an engaged and loyal workforce.
Here are five sure fire ways to improve your compensation strategy:
- Performance based promotions
When employees understand that the only way they can earn more is to perform at higher standards, they are generally more motivated. Providing generous pay for performance with regular performance meetings each quarter works better than a once-per-year evaluation and plays an important role in efforts to improve your compensation strategy.
- Corporate recognition awards
Employees thrive in a work environment where they receive frequent feedback and praise from superiors. This is particularly true when it comes to Generation X and Y candidates. Simple certificates of achievement tied to a special rewards program works nicely.
- Industry educational support
In progressive workplaces, employees who are encouraged to become lifelong learners often become top performers. Giving employees the tools and resources to achieve industry certifications and degrees can help to elevate the quality of work produced, while providing a meaningful career incentive that’s recognized by all.
- Corporate wellness programs
A healthy work environment means a productive environment. When employees are given the resources to maintain health on-site, they tend to make an effort to be more aware of their personal health. Multiple studies have shown that corporate wellness programs can be used to boost compensation plans and ultimately reduce many health related costs.
- Flexible and collaborative work options
Employees are looking for ways to improve their work-life balance, therefore offering the ability to work a flexible schedule or from a collaborative home environment can be viewed as a major plus. When presented as part of a compensation strategy, this can help your recruitment and retention rates enormously.
Giving employees a robust compensation program can help your business grow over the long term. Maintaining a loyal employee population helps to increase productivity and profitability, therefore a generous compensation strategy supports this effort.