101: Worker compensation & benefits
Human resources departments have a core element in compensation and benefits packages. They are motivators for things like productivity, engagement, and performance for existing employees, as well as a tool to recruit new talent. To overlook regular analysis and periodic revamps of these packages is to potentially make your organization less competitive. Here are some ways to think about compensation and benefits so they can pay off big for your company.
Know what you’re up against. Stay competitive in the industry. Monitor the recruitment landscape to see what other companies are offering and provide competitive perks, benefits, and bonuses aligning with what ideal candidates want. For smaller companies, this could mean using free tools like Glassdoor to create benchmark salaries for a few competitors to see what they promote for benefits, compensation, and perks. Knowing larger companies have deeper pockets, “smaller companies should look to pitch what’s unique and appealing about their company,” according to Recruitee.com, in the form of employer branding and culture messaging.
Make room for seniority. “It’s essential to develop opportunities for career advancement,” creating senior and entry-level roles for each company position, says Patrick Proctor at BusinessNewsDaily. The compensation matrix will need to be adjusted accordingly.
It's all in the presentation, says Tess C. Taylor at the Academy to Innovate HR. It isn’t enough to create a solid compensation and benefits package, you have to communicate it effectively, which sometimes means breaking it down during job offers so it’s well received. “There may be rewards that are not immediately perceived as valuable or very tangible, such as stock options,” she writes. “Hence, a little crunching of numbers is in order to help make this information easier to digest.”
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