Compensation Strategies for Attracting and Retaining Top Talent
As a leading staffing agency, CulverCareers understands how difficult the hiring process can be. Many of our clients report having a difficult time attracting new talent, as well as retaining key employees. Poorly structured employee compensation plans are a key contributor to such staffing issues.
At CulverCareers, experience has taught us that if you want to land top performers, you have to offer top compensation. Yet, salary expenditures must be commensurate with your budget and overall business goals. Balancing all of these criteria to develop realistic, attainable, and attractive compensation plans is no easy task. With such issues in mind, we wanted to walk you through some compensation strategies to attract new employees.
Competitive Hiring Market
Competitive hiring markets further the need to revise and streamline your employee compensation packages. Especially in candidate-driven markets, you will have to work hard to beat your competitors in attracting and retaining top talent. This is especially true in the new remote work, post COVID-19 era.
When it comes to passive candidates, remember that the best people won’t switch jobs for the same compensation they are currently getting. All things considered, switching careers is a risk and people expect to be compensated for it. Paying people more is a great method for attracting talent to the organization.
Importance of Compensation Strategy
Many businesses develop salary plans without doing appropriate research or considering compensation perks like fringe benefits. In most cases, they pay employees based on what “they heard” through rumors and hearsay. To be competitive, you must conduct real research on your given market and pay people accordingly.
The main challenge for business owners is to develop competitive compensation packages while also remaining profitable. To achieve this balance, you need to carefully study your own business performance and gauge it against average pay in your given market. Using real numbers, you can make logical choices regarding competitive compensation.
Some companies fail to remember that average pay changes with locations. To illustrate, a competitive salary in Oklahoma City, OK will likely not look as attractive in San Francisco, CA. Simply because, the cost of living is far higher in the SF Bay area. To craft the best salaries possible, study your competitor’s salary structures in a particular market – then develop your own plan based on this info.
Fringe Benefits Packages
Well-constructed fringe benefits packages can make all the difference in attracting and retaining the right employee team. This notion is even more important when it comes to recruiting for the C-Suite. Please note, fringe benefits can raise salary expenditures by 20-30% each year. You will want to make sure you account for these extra expenses when creating your annual salary budget.
It goes without saying insurance coverage is one of the most important fringe benefits you can offer team members. How you decide to craft your insurance coverage will depend largely on your operating budget and overall business goals. It is also advisable to consider what your competitors are offering their employees. Most companies offer medical, dental, or vision insurance, or a combination of the three.
Paid Time Off
Offering paid time off is a great way to attract top talent while also retaining your key employees. Especially since the COVID-19 pandemic, flexibility and time with family have become greater concerns for job searchers. Again, consider what the standard time off protocol is for similar businesses in your location. Using this info, create a competitive plan offering paid vacation, sick days, maternity leave, as well as holidays. Giving your team members time for personal care always looks great in the end.
Retirement plans are one of the most differentiating factors for job searchers. This notion is particularly true for executive talent, as custom deferred compensation plans can save them massive sums of money in retirement savings. 401k plans are also critical in attracting stable professionals who need to plan for their futures.
How can CulverCareers Help?
With years of experience, CulverCareers has seen the advantages of offering compensation packages to attract the best talent. We have insider knowledge on industry averages that you can use to craft competitive salaries for all levels of employees.
CulverCareers has also developed employee retention platforms such as Employee Engagement Surveys to help our clients keep tabs on morale in the workplace.
Employee Retention Consulting
CulverCareers offers Employee Retention Consulting if you need additional help with keeping key employees. We would be happy to work with your HR department to incentivize team members and help grow your company. In the end, compensation and employee satisfaction come hand-in-hand.
CulverCareers would love to answer any questions you have about attracting and retaining top talent. Please Contact Us to learn more.