If your company is in the process of scaling – congratulations! Before you go into full-on celebration mode, there’s still plenty of work that needs to be done to ensure that you scale effectively and efficiently. Whether your company is currently growing quickly or hopes to do so in the near future, continue reading to learn how to keep compensation transparency top of mind.
Securing the best talent possible to help grow your company will be imperative to scaling successfully. However, it can be a big undertaking – so much so that startups have been found to spend around 40% of their working hours on projects that do not generate income, such as hiring, HR tasks, and payroll.
As your company considers how to scale its business, it’s therefore crucial that HR and People teams implement timesaving methods to scale the hiring process. How does your company stack up?
Part of elevating your hiring process is knowing what candidates are looking for in the first place. Both compensation transparency and an open, transparent company culture are key for job seekers looking for their next opportunity, with 96% of job seekers agreeing that it's important to work for a company that embraces transparency.
Your compensation philosophy is a key component of bringing on the right candidates as your company grows. Is your team sticking to its compensation philosophy and making compelling offers that are easy to understand, detailed, and provides a closer look at what makes your company stand out from the competition?
According to a survey conducted by Glassdoor, the top 5 pieces of information job seekers want employers to provide as they research where to work are:
Providing a seamless offer experience at scale across your hiring process can not only improve the overall experience for candidates, but it can also enhance your hiring workflows and make room for greater acceptance rates. With the help of compensation management software, you can elevate your hiring brand while better communicating total compensation, perks and benefits, and your company’s unique mission, vision, and values.
Having a team of experienced experts is great, but does your company culture encourage team members to be passionate about reaching one common goal or vision? A study by Harvard Business Review found that experience alone does not make a team successful — soft skills such as “entrepreneurial passion” and “shared strategic vision” are also required.
Equitable and transparent compensation practices can help foster a sense of community and encourage working toward one common vision. If each team member feels they’re being compensated fairly, making a difference, and striving for the same goal, they’ll be much more likely to be engaged and succeed.
Compensation transparency can also help employees better understand their financial stake in the company when equity is communicated clearly. A whopping 95% of candidates don’t understand their equity packages, even though equity can account for huge earnings down the line as your company grows. Communicating equity from hiring through the retention process can ensure that employees are positioned to understand the importance of their impact and stake in the company.
As your team grows, it’s crucial that HR and People teams keep your company culture intact and continually optimize for the best employee experience. In fact, 46% of job seekers say that company culture is very important when choosing to apply to a company, and 47% of active job seekers say their driving reason to look for new work is due to issues with their current company culture.
Cultivating and maintaining a strong company culture can produce twofold results. Not only is it vital to clearly communicate your company culture and values throughout the hiring and offer process, but it’s also important to continually remind employees of why they love working at your company in order to retain them.
No company is perfect. Identifying areas for improvement will be critical in order to scale successfully, and there’s no doubt that scaling often means more work with a higher potential of burnout among employees. When all is said and done, HR and People teams aren’t exempt from overworking that leads to burnout.
A survey on employee burnout found that 22.9% of respondents felt the main reason for burnout is poor leadership and unclear direction. Overall, the top three reasons for burnout at tech companies were found to be poor leadership, overwork, and insufficient rewards. Ensuring compensation transparency at every level of hiring and retention can be made easier with the help of the right compensation management software, provided that it can help:
Imagine being able to easily communicate total compensation, send beautifully branded offer letters, and tell your company’s unique story to close more candidates? Welcome’s Digital Offers has made this a reality by eliminating the guesswork for HR and People teams who are actively scaling their companies.
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