Better compensation, perks and benefits promote high employee performance. Employers must implement well-structured compensation planning to encourage top performers to excel and achieve far-sighted business goals.
A study by University of Phoenix revealed that 55% working adults show interest in career changes & compensation hike, whereas 24% of working professional are ‘extremely interested’ in changing careers and jump on better employment opportunities. It simply means 3 out of 5 employees would not hesitate from quitting their current jobs if they are offered competitive compensation. It’s true; at least we believe so!
Considering the increasing numbers of employees with this outlook, employers must ensure they implement smart strategies to retain employees (and most importantly, the high performers) and build a non-stoppable and highly functional business organization.
Thus, building a strong workforce and retaining top talent becomes a key to success for still-improving business companies. Here are few easy ways to retain employees using organizational internal capabilities.
Compensation, Perks, and Other Benefits
Though money is not everything, but there is no harm if it is smartly used to improve recruiting & retention strategies.
Not all organizations are capable of giving best salaries to their recruits. But they can surely follow below steps to make their compensation work better and smarter.
Do Not Let Pay Compression Prevail in Work Environment
Pay compression is something sensitive that each employer must take care of. When new hires are employed on starting salaries somewhat closer to the current employees, it creates pay compression.
Employees receive almost similar pay while having a great difference in skills, competencies, knowledge, experience and responsibilities. As a result, such instances create internal conflict between senior and junior employees and demoralize the senior ones.
Most commonly, problems arise when employees start discussing and comparing their annual pays with that of others. Forbidding employees from doing so could be a challenge, but this should be followed in order to prevent pay compression.
To resolve this, the employers must take a step to cure pay inequality. Without undertaking all the employees at once, it is wiser that the employer adjust employee’s salaries in staggered sets and save itself from the financial hit. Let’s say the organizations can start with high performing personnel appointed on the key positions and then take its way down.
Make Pay-for-Performance Your Next Weapon
HR experts and researchers accept the fact that pay-for-performance programs are the best way to boost employee morale and identify top performers.
Merit-based programs help in recognizing different levels of performers, including top, average and low performing employees. Employers must use available funds to appreciate efforts of the best performers, it can really bring a world of difference to the performance based compensation program.
Employers must monitor the performance reviews throughout the year to make smarter move and award deserving talent.
Perks & Benefits Satisfy Employee Thirst
According to a study of employee benefits trends by MetLife, it has been found that two out of five US employees enjoy working at their current jobs and recommend their employer to be the best workplace. Amazing! Can we figure out what are the great perks and benefits given to these happy workers?
Perks and benefits needed to satisfy employee requirements are variable. Every individual has different demands. The best way to figure out this difference is through communication. Employers need to evaluate what their employees see as most important benefits. Employee satisfaction surveys can be conducted to focus on these areas and make one opinion.
Besides this, HR folks must encourage employees to share their needs and desires for specific benefits. They should also make it a point to keep reminding employees about the existing benefit programs, during induction, orientation and other employee engagement programs, so that they are aware of making best use of them.
A final thought….
We know that employee turnover is extremely expensive for growing organizations. And filling a position also costs too much to the employer.
Retaining the best employees is in the interest of employers. And there is no harm in considering it as a mid-way solution.
So, why don’t you put more efforts in employee recognition & compensation planning!
Trust us, and try it once. We are sure that you will build a stronger workforce keeping high performers around for longer span.