Now more than ever, attracting and retaining top talent involves much more than just an enticing paycheck. Today’s market calls for diverse offerings in order to snag highly sought, highly talented employees like an assortment of unique, attractive benefits. This being said, it’s still important for employers to determine their compensation philosophy before deciding what benefits to offer. To do this, employers need to take a detailed look at the organization’s vision, practices and ability to pay using one of three compensation philosophies:
An employer may choose to adopt a compensation strategy that exceeds, or pays more, than the pay rates in the industry or marketplace. This can help increase the supply of candidates, decrease employee turnover, and boost morale and productivity. However, this type of structure has the greatest risk of raising overall labor costs.2. Matching
Another option is to generally match the market. When using this compensation strategy, employers pay average wages and offer a standard benefits package for their market or industry.3. Lagging
Sometimes employers recognize that they must lag the market. They may be a smaller company or startup that simply doesn’t have the capital yet to make competitive salaries a reality.
All three options are fine as not every company can offer the highest salaries. You can still attract great candidates even if you match or lag the market by mentioning company awards, insurance plans, retirement benefits, paid time off and other ancillary benefits to make your company stand out. Glassdoor recently found that the top predictor of workplace satisfaction isn’t pay. Rather, it’s a company’s values and its culture, closely trailed by the quality of senior leadership and the career opportunities at the company.
So, if you can’t afford to lead your market in salaries and insurance coverage, there are countless other ways to make your employees feel valued and appreciated:
These could be anything from transportation subsidies, flex time, working remotely or even free snacks in the office.
Company Growth Potential
Candidates want to see that there's a career path for them within the company. If you can show them the path, do so by highlighting the growth potential during the hiring process.
Painting a picture of what to expect from management and the workplace helps you appeal to people who not only possess top talent, but are also more likely to be engaged with the organization and a good fit with other workers and the company mission.
Remember, a paycheck is only one part of the equation. Candidates today are looking for that special something extra.
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