[Infographic] Compensation 201: How to Upgrade Your Compensation Practices

The hiring market is shifting yet again, with layoffs, hiring freezes, and valuation drops. And compensation practices that were common pre-pandemic no longer address today’s constantly changing labor market. 

While this backdrop is a difficult challenge for employers, it’s also a great opportunity to reimagine a future with better employment outcomes. That all starts with employers offering competitive, equitable, and fair pay. 

Modern compensation tools and data are more equipped than ever to fill this gap. 

Do you want to… 

  • Continue to bring the right candidates to your doorstep?
  • Close gaps in wage inequality, improving employee satisfaction as a result?
  • Retain talented employees during this instability?
  • Set the stage for a diverse and thriving team?

Compensation decisions based on real-time data will help you. 

Your company will have a difficult time succeeding without finding the right people to fill essential roles. Making informed compensation decisions — ones that rely on real-time data and internal benchmarks — is your company’s golden ticket to competing in today’s tight labor market.

Download our infographic, where we’ll walk you through today’s hiring market and how to upgrade your compensation decisions to stand out. 

If you’d like a deeper dive on the topic, download our guide here.

Here's a look at the information provided in our infographic: 

Hiring top talent in today's market is no small task.

And the market is shifting again with layoffs, hiring freezes, and valuation drops. While the current market is a difficult challenge for employers, it’s also a great opportunity to reimagine a future with better employment outcomes. That all starts with offering competitive, equitable, and fair pay.

4.4 million people left their jobs in December 2021 alone. 

34% of employees report feeling engaged at work. 

Modern compensation tools and data are more equipped than ever to fill this gap.

Compensation decisions based on modern comp tools with real-time data can:

  • Attract the right candidates
  • Close gaps in wage inequality
  • Retain talented employees
  • Support a diverse team

Why Real-Time Comp Data Matters

Promote an Equitable Company Culture

$0.83 to every dollar: What women earn compared to men

The gap widens more broken down by race. 

80% of employees want to work for a company that values diversity, equity, and inclusion. 

Use objective compensation data to close wage gaps.

Your HR or People team can use data tools to compare salary ranges:

  • For similar roles
  • Within departments
  • Against current market trends

Gain a Competitive Edge

Employers are losing out on explaining the full value of compensation packages. 

95% of employees don’t understand their equity

But 40% of total compensation is non-cash.

On top of salary, employers should clearly display the value of:

  • Equity
  • Health benefits
  • Perks
  • Bonuses

Make Recruiting Easier

58% of jobseekers declined a job offer due to a poor experience with the potential employer. 

Using real-time compensation data will help your recruiting team…

  • Remove decision fatigue
  • Reduce errors in manual compensation calculations
  • Decrease ambiguity on what to offer
  • Make the hiring process more smooth and transparent

Improve Employee Retention

$1 trillion: Amount businesses lose every year due to voluntary turnover

19% of workers report compensation as the top factor for job-hopping.

Employees who don't understand the total value of their compensation package won’t value it.

Educating employees on total comp and the growing value of equity can help with retention initiatives. 

How to Change the Game with Real-Time Data

+4.4% nationally: Amount wages grew on average in Q4 2021.

+8% more: Average amount job switchers made by switching roles.

Gather Relevant Compensation Data

57% of HR leaders still use Excel spreadsheets to gather and analyze compensation data.

Upgrade to real-time data that regularly updates itself and integrates with ATS solutions.

Real-time data should include external market data and internal benchmarks.

Create Benchmarks for Reference and Comparison

44% of HR leaders do not feel that their company has achieved pay equity.

To solve for this, benchmark data across the following:

  • Internal teams and their pay – Salary ranges, stock options, perks, and benefits
  • Levels and bands – Associates, managers, VP, and C-Suite compensation
  • Market rates – Internal compensation vs current market rates

Model Compensation Scenarios

Only 19% of employees have a high-level understanding of their benefits. 

Explore trade-offs and possibilities by modeling different compensation scenarios.

This helps candidates understand the full value of their offer in a persuasive way. 

Welcome Can Help

Welcome is a cutting-edge compensation tool that empowers teams to attract and retain talent by using real-time compensation data. Move away from using outdated manual processes when communicating compensation and start building upgraded compensation strategies.

Upgrade to Real-Time Data for Free

  • Eliminate spreadsheets
  • Integrate ATS, payroll, and cap tables
  • Enterprise-grade security 

Improve Recruiting and Retention

  • Create comp scenarios for candidates
  • Centralize offer creation
  • Easily explain career paths and equity

Schedule a demo with our team to learn more.