Have you ever lost an employee you wished you hadn’t? Retention can be a concern for any company, especially in this candidate-driven market.
Candidates are often wooed by what they believe are greener pastures, and if your retention program is lax in any area, it can provide an opening for your best employees to pursue other opportunities.
One part of your retention program, whether your realize it or not, is your compensation structure. However, the traditional compensation structure, one based almost solely on incremental raises and paid benefits like medical and dental, won’t cut it in today’s marketplace and certainly won’t get the job done in the marketplace of the future.
In the fast-paced world in which we live, candidates’ needs are changing. You need to make sure that the way in which you offer compensation changes along with that, especially when it comes to compensating the best and the brightest. It all boils down to one thing: ensuring that you’re giving your most productive employees what they need when they need it, regardless of whether that involves their base package or an incentive package, as well.
The key is to be flexible, both in terms of what you offer and how you offer it. How, exactly, does your compensation structure measure up against other companies in the industry? Although it’s true that money isn’t everything when candidates decide which job offer to accept, what you’re offering should be on par with everyone else. In fact, it’s probably a good idea to offer just a little more. View it as an investment that could pay off in a big way down the road.
Okay, now that your base package matches up with the competition, what can you offer that will differentiate you from everyone else? And here is where you can employ flexibility and creativity in order to make yourself more attractive to star candidates (as well as effectively retain those employees you already have on board).
You should look carefully at every aspect of your compensation structure. The first question to ask is, “Will this structure do its part to help retain our star employees?”
If not, decide what changes need to be made and then implement them. It would even be a good idea to ask your employees what they need and what is important to them.
The next question to ask is, “Will this structure help us to attract the best and brightest job candidates in the industry?”
Chances are good that if your structure is helping to effectively retain employees, then it will help to attract candidates, as well. But make sure that you have “all of the bases covered” by conducting research or through other means.
You can make 2023 a highly productive year for your organization by ensuring that your compensation structure is balanced, targeted, flexible, and most of all, fulfills the needs of your star employees and top-notch applicants.
Contact The Doepker Group today to find out how we can help your organization!
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