It’s no secret — regardless of what is happening in the economy, offering a robust compensation package and a well-defined structure remains in the best interest of both employers and employees.
In fact, the top two reasons for employers increasing benefits in their compensation packages are retention (72%) and recruiting (58%).
While it is clear how important compensation structure is, for many candidates and employees it is anything but.
Your most valuable resource is your time. While that sentiment is thrown around a lot, its truth cannot be underestimated.
Automate the recruitment process and utilizing tools to ensure consistency and scalability. You’ll save time that will free up the recruiting team to truly focus on bringing in the best talent.
When teams can’t focus on finding the right people, they may instead hire rashly to fill an open position as quickly as possible. Turnover can increase as a result. From there, morale, productivity, and company culture simultaneously decrease. Hiring, training, and onboarding is also a costly long-term investment in a new employee. When that person leaves quickly, the company also experiences a negative ROI.
It doesn’t have to be this way. By providing more competitive and transparent compensation, benefits, and perks, candidates are empowered and engaged from the very beginning of their employee lifecycle. Not only does the time to hire decrease (along with the costs of that hire), but having engaged, inspired employees is one of the best ways to increase retention.
Streamlining the entire compensation process and simplifying the information provided impacts not only the candidate or employee, but the overall company culture.
“When employers make compensation information accessible, the greater workplace culture may foster more trust and openness.”
- HR Drive
Employees do not know how to access the materials, do not want to read them, or do not understand the compensation package provided to them. Regardless of the reason, each scenario creates a level of uncertainty about what they’re being paid … and what they’re worth.
By scaling how you offer compensation with clear practices and operations, employees will be more likely to open and read the materials provided. They will also have a better understanding of what they are being offered. Employees will feel less intimidated, and more empowered — sentiments that improve employee performance, engagement, and retention.
Ultimately, before you can communicate the compensation package to your employees, you want to establish fair and equitable pay practices based on real-time compensation data.
“At a time when employers are engaged in a hyper-competitive environment for talent and open platforms are increasing the level of pay information available to current employees and recruits, the need to build a solid pay communication strategy has never been greater.”
- Catherine Hartmann, North America Rewards practice leader at Willis Towers Watson in a SHRM.com article.
More than ever before, candidates and employees are looking for what they deem to be greener pastures. They also have increased confidence to quickly make a move to find them. But if those pastures are based on compensation, in reality, they may not be greener at all.
By using compensation data to develop structured pay levels, you will establish fair and equitable pay practices that are transparent from hire. In essence, you will provide that level of certainty candidates and employees require today. Knowledge is power. And having all of the facts gives employees some control in a situation they likely thought they had none.
“Experts say managers also can use market compensation data in their efforts to retain employees who may be considering leaving for greener pastures.”
Ready to solve your challenges with a reimagined compensation structure? Download our guide on how to get started.
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