Developing a total rewards and compensation strategy can be an overwhelming HR task, so let’s keep it simple. Ask yourself these three questions to help you assess where you are with your current compensation package. If you answer “yes” to any of the questions, you may need to spend some time creating a new compensation strategy.
- Are you having a difficult time attracting key talent?
If yes, you may need to increase your base pay and/or add an attractive benefits package to at least interest applicants.
If no, your base pay amount is effectively enticing the right applicants.
- Are your top candidates regularly rejecting your job offers?
If yes, you may need to adjust your total compensation package, which may or may not include base pay, bonuses/incentives, benefits, and PTO.
If no, congratulations! Your total compensation package may not need any adjusting.
- Do you have any employees with performance problems?
If yes, you may need to spend time creating bonuses/incentives. Although money may be a motivator, sometimes employees simply need recognition. See “Three Easy Ways to Retain Great Employees” for low-cost ideas. If money is available to help boost performance, here are some Variable Pay Ideas that may help you reach your company goals.
If no, great job with your hiring and training program! Perhaps it’s time to set even loftier goals for your employees to maintain their engagement.
Oftentimes, employers are quick to blame a “small candidate pool” or “insufficient advertising” when they struggle to get high quality candidates to apply for open positions. If this is a consistent problem at your workplace, it may be time to do an inward inspection of your base pay and/or total compensation package. For help with successfully diagnosing the problem, please contact our Human Resources team.