There is no denying the fact that the recruitment process is one of the toughest tasks for an organization. Product Management consultants believe that many times they face hard times in attracting new candidates and retaining the existing ones. What is the reason behind such a problem? The answer is – poorly structured employee compensation plans.
You need to align your compensation strategies with the values of the company. Let’s understand more about it in detail.
Competitive Hiring Market
The hiring markets are getting competitive day by day. The markets need to revise the employee compensation packages from time to time. When the market is candidate-driven, you need to put workable strategies into play to stay ahead of your competitors in retaining the best talent in your company. It holds extreme importance in the COVID era.
It is remarkable to note that individuals don’t change jobs for the same salary they are currently getting as it poses a risk for them. So, employees have the expectations that they will get compensated for their role. Thus, paying your employees more not only attracts the new talent but also retains the existing ones.
Importance Of Compensation Strategy
Businesses tend to develop salary plans without conducting any appropriate research or taking compensation perks into account. Most businesses pay their employees for what they have heard through rumors. You should perform real research and then pay your employees according to that.
Analyze your business performance and measure the average pay in your given field. Measuring real numbers will make you form logical choices in developing competitive compensation packages. Keep in mind that average pay changes with the locations. Therefore, design the best salaries after studying the competitor’s salary structure.
Let’s Move Further To The Compensation Strategies To Attract And Retain Top Talent.
Paid time off – There are companies that don’t give their employees paid leaves. It somehow disappoints the employees about their work and the company where they are working. You should offer paid time off to your employees to attract them as well as retain them. The COVID-19 pandemic has made spending time with family a bigger concern among the employees. Look for your competitors and determine what standard paid time off they are offering. Keeping all this information in mind, form a plan of paid vacation, sick leaves, maternity leaves as well as casual holidays. Showing your employees personal care is a great way to retain them and make them motivated toward work.
The communication system and pay transparency needs improvement – Do your employees know about the existing compensation system in your company? It is high time to make them know the compensation policies of your company. Most of the employees disagree with the fact that they are fairly paid. Very few of them agree that the process of determining the pay scale in their organization is a transparent one. It is vital to form a compensation plan keeping the organization’s culture in mind and communicating the same to all the employees.
Keep an eye on what your competitors are paying – You need to pay your employees the same or more than your competitors. It will keep them motivated. Monitor your compensation plan every year to check what compensation policies your competitors are following and make adjustments accordingly.
Insurance coverage – You cannot deny the importance of offering insurance coverage to your employees. The nitty-gritty of your insurance coverage is dependent on your operating budget and business objectives. Don’t forget to check what your competitors are providing to their employees. Many companies offer medical, dental, and vision insurance. Or they can also offer a combination of the three. So, form the strategies taking your employees’ as well as company’s benefit into account.
Non-financial rewards hold importance too – It is not only the money or salary that keeps your employees motivated. You need to introduce other forms of rewards too. For instance – You can conduct an annual trip as a reward for your employees who have achieved certain targets. It enhances the motivation levels of the employees and also builds teamwork. The techniques of managing and training your employees affect their performance and retention. Therefore, in addition to paying your employees according to their worth, develop some non-financial rewards too.
Retirement plans – Job seekers look for the retirement policies and plans in a company wherever they are applying. Any Product Manager recruiting agency can form custom deferred compensation plans that are significant in attracting stable professionals who are keen to plan for their futures.
To Sum It Up!
Undoubtedly, compensation is an extremely important part of your talent strategy. Hiring and retaining top talents depends greatly on the compensation strategies. Keeping the above-mentioned points in mind, you can definitely form excellent compensation strategies that will not only attract the new talent but retain the existing ones in your organization.