Use a Competitive Compensation Package to Attract & Retain Top Talent

When the same role in one company pays $60k, and the other pays $45k, it’s a no-braining which one you’ll choose. But take this scenario:

Which role are you more likely to take? Competitive compensation plays a key role in attracting and retaining top talent. It’s vital to consider the perks you’re offering and how it’s helping you do what’s best for your organization. Align your pay practices with your company’s vision. You can’t achieve business goals without a strong team that feels appreciated and motivated through their incentives.

Total Compensation is the New Competitive Compensation

Paying competitively has traditionally meant offering above-market rates for roles. You’ll take industry, location, experience, and skills into account. This tactic may land you a top candidate, but how likely are they to remain dedicated to your company in the long run?

Total compensation is the new competitive compensation. People stay with companies that consider their well-being, encourage work-life balance, and facilitate a positive work culture. When developing your compensation program, start by ensuring you offer salaries that are competitive in the market. Then, take your time deciding on benefits, including insurance, retirement plans, reimbursements, career development opportunities, and health benefits.

Think of perks you can offer that aligns with your company culture. Dreamhost’s office in California has games rooms with ping-pong tables. Comvert headquarters in Milan boasts an indoor skate bowl. YouTube’s space in California is all about relaxing, with gym activities and indoor putting. Obviously, creating a workplace this awesome isn’t possible without the big bucks. The point, however, is to consider what you can afford and get creative with your perks.

Competitive Compensation Boosts Morale & Retains Staff

According to Zenefits, 63.3% of companies say retaining employees is harder than hiring them. We can see that with the current skills and labor shortage across America. It’s an employee’s market and employers are being forced to listen more carefully to what their workers want.

You can’t just develop a pay strategy aimed at pleasing new hires. You have to value your existing team, too. Offering a holistic, competitive compensation package can boost employee morale and improve retention rates. Productivity is encouraged when your performance isn’t just recognized, but also rewarded.

You can get creative with rewards programs. These could be performance or target-based incentives. You could hold team wellness competitions to promote exercise and healthy eating. There could be monthly category-based rewards in the office. Think about ways to make your compensation package one that will boost employee morale.

When people know that their efforts are noticed and appreciated, a satisfied and productive team forms. A competitive compensation package can then help promote a work-life balance, improve quality of life, and ultimately facilitate a work culture that people want to be a part of. This is the key to improving retention rates in your organization.

Win Top Talent Over Your Competition

Everyone knows what their skill sets are worth on the market. As companies scramble to fill vacant roles, certain skills are more in-demand than ever. If employees are being picky, employers have to step up their game to attract the best candidates. Your compensation strategy needs to be researched and informed so you don’t lose top talent to your competition.

Competitive compensation takes market value into account. It factors in location and the cost of living in these areas. You should also be mindful of the demographics in the area to determine what benefits you’ll offer. If the role is in central New York, public transport reimbursement could be a selling point. Being located somewhere with a large population of young families could mean you should be offering childcare assistance. Remember, compensation isn’t just about salary.

Staying competitive starts with research. Deciding your pay grades and the details of your compensation package requires data. The US Bureau of Labor Statistics can offer reliable data, as well as online surveys, job boards, and compensation software. Investing in this research will help to form a clear picture of how to develop your compensation policy.

In Conclusion

A competitive compensation package is a great tool. Considering location and demographics when adding benefits to your compensation plan can help you stand out and attract top talent over your competition in the industry. Ensuring that you acknowledge and reward high performance as part of employee incentives will also encourage retention rates. If you want to attract and retain employees, offer market-researched salaries with a holistic package to remain competitive.