Posted on: 22 August 2017
Compensation is a integral part of running a successful business. Compensation includes both the salary paid to employees in addition to other benefits of value. Some of these benefits may include vacation time, health insurance, bonuses, and other extras associated with working at a company. When it comes to employee satisfaction, compensation plays a large role. Dissatisfaction with compensation or pay is the number one reason why workers leave their current place of work. Business that are growing often find that their compensation structure is not helping them retain employees. For growing businesses, losing valued employees over pay can be a major hurdle. Here are a few tips for coming up with better compensation strategies.
Salary Research Is A Must
Knowing how much similar companies pay their employees is a must for coming up with a good compensation strategy. If a competing company pays significantly more or offers better benefits, then a growing company may find themselves losing talented employees to the competition. One way to prevent this is by providing salaries that are on par with the competition. Compensation surveys gather data and determine how much other companies are paying for certain positions. Doing compensation surveys can help determine what a competitive salary range would be for the company. Smaller companies of less than 500 employees usually spend around $2,000 on these surveys while larger companies can spend upwards of $12,000.
Have A Defined Compensation Structure
Having a defined compensation structure is also a must for any growing business. This means having standardized benefits and coming up with a salary range for each position. It's also important to have the ability to reward employees who contribute more to the company than others. For this reason, it's important to be able to add in things such as raises and bonuses into the compensation structure.
Hire A Consultant
Coming up with a solid compensation strategy for a growing business can be difficult. Hiring a consultant to help with the details is one way to quickly come up with a solid compensation structure. Compensation consultants can do all of the leg work in terms of salary research and coming up with a detailed plan for compensation. Hiring a consultant is a great option for businesses who need to develop a compensation structure from the ground up or business who simply need help optimizing their existing compensation strategy.
Whenever a business grows, often it's compensation strategy does not grow along with it. Not paying enough attention to compensation can lead to a loss of valuable employees. Salary research is a must for growing businesses. Failure to do research could mean losing employees to higher paying rivals. A defined compensation structure that rewards high performing employees is also a must. Hiring a compensation consultant can help a growing business meet these needs. For more information, contact companies like Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc.Share