Tagged: compensation

How to Improve Employee Benefits and Compensation Packages

As a business owner, you’re aware of the costs associated with employee benefits and compensation packages. The amount of time and money it takes to offer these perks to employees can seem overwhelming, but there are simple ways for you to lessen the burden and improve your employees’ satisfaction and recruiting efforts. This process begins with analyzing your current offerings and employee needs and continues with establishing a program that is comprehensive, modern, and accessible to employees.

Encompass All Needs

Health insurance and paid time off are benefits expected by most full-time employees and it is important to ensure they are customized to meet your business’ needs. There are a variety of health insurance plans to offer, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Point-of-Service Plans, and more. Providing vision and dental insurance is another way to benefit your employees. Some employers even offer flexible spending accounts (FSAs) that allow employees to choose where their expenses are used, including at general practitioners, optometrists, dentists, and specialists.

To combat the spread of illness due to employees attending work while sick, employers can allow paid sick leave for a certain number of days. Traditionally, each employee gets two weeks to begin with and additional days as they gain tenure at the company. To combat the fear that this option will cause a loss in productivity and collaboration, establish a tracking system that allows for communication and the monitoring of employee’s projects and a secure cloud platform that allows access on the go.

Offer Outside the Box Perks

In addition to traditional benefits, there are many steps you can take to add value to your workplace. One of the most cost-effective ways to boost morale and loyalty is to recognize employees for their hard work during company meetings and via company-wide emails or announcements. Other options include investing in organizations that your employees can join for networking or to learn from. This is a popular option because it allows your employees to learn and network while promoting a strong brand in your community. Additionally, many companies are beginning to offer corporate wellness programs. Providing an in-house facility or discounted memberships will boost your retention and recruitment and many healthcare providers offer discounts to employees who exercise regularly, as it reduces the number of illnesses.

Provide Transparency

One of the most important steps you can take to modernize your benefits and compensation packages is to invest in cloud-based software that will store, manage, and distribute this data. This kind of software eliminates the confusing and unorganized paperwork that bogs down both HR employees and team members while keeping a record of and easily distributing notifications of each addition, elimination, or change.

It is important to take your time when developing this offering, as it is uncustomary to rescind these offerings and inconvenient to change them frequently. Establishing this type of employee benefit and compensation package will create more loyal employees and establish trust with potential team members, benefiting your recruitment and retention along the way.

Is It Always About the Money?

 

The labor market is more candidate-driven than ever before. Talented job seekers are more tech-savvy and have more access to various tools that help them compare and contrast competing offers. This, combined with different personal motivators, has shifted the influence power in the recruitment process from employer to employee. As a result, many talent acquisition leaders, hiring managers and recruiters are re-approaching how they win over top talent. And as the power shifts in favor of the job seeker, it begs one important question: Does winning the best talent always boil down to offering more money? Exploring which tactics HR teams are using to address current employment motivators highlights the critical debate of monetary versus non-monetary compensation.

Cash Compensation vs. Intrinsic Benefits

For many companies, deciding where to focus their compensation and benefit programs isn’t so cut and dried. A recent study from Glassdoor indicates that 43% of employees expect a pay raise, and 35% said they would leave a job if they didn’t receive one. On the other hand, the same study reports that 79% of employees would prefer new or additional benefits. Choosing between cash or intrinsic benefits largely boils down to specific business objectives, but some industry approaches highlight impactful strategies for engagement and retention, including tactics like:

Offering Unique Benefits & Non-Monetary Compensation

Offering unique benefits and employee perks on top of monetary compensation might help attract talent. Perks like paid sick days, childcare assistance, and gym membership options all ranked above a flat-out pay raise in the study mentioned above.

Being up front about perks and benefits is equally important to attracting top talent. In the Glassdoor study mentioned above, Rusty Rueff, career and workplace expert says: “Employers should be communicating clearly about non-traditional compensation. Recruiters should take note that touting the benefits and perks offered can help win talent of different demographics, industries and occupations.” Making non-monetary compensation a priority can help recruiters remain relevant and competitive in a job market where roughly 4 out of 5 candidates prefer more robust benefits packages.

Salary Transparency

Delivering transparent salary information can resonate with potential candidates more than higher pay. Another survey from Glassdoor, the Global Salary Expectations Survey, found that 69% of employed adults across Europe and North America wish they knew more about market rates for salary and compensation for their positions and skill sets. Proactively offering detailed total compensation statements projects honesty and transparency to job seekers. Recruiting staff that considers salary transparency a high priority may have better success in separating themselves from the competition.

Incentivizing Loyalty

The current labor market is fickle. A Gallup study shows that 51% of workers are looking to leave their current jobs. A proactive and transparent approach to retention strategies will help give candidates a sense of belonging and incentivize loyalty from the moment they receive an offer. In addition, setting up a career development plan for new hires shows employees the value they add to the organization, encouraging a nurturing and supportive approach to career growth that will incentivize potential candidates.

In such a candidate-driven market, enticing and retaining top talent remains highly competitive. Candidates with changing values and a major influence on the overall recruitment experience will continue to affect how companies think about overall culture and how they market themselves to job seekers. Offering a robust benefits package that includes both monetary and non-monetary compensation, having a transparent approach to salary expectations, and focusing on retention are strategies used by top talent acquisition professionals to stay competitive.

Learn more about the benefits of a proactive approach to total compensation statements with this article.

TotalRewards Software Exhibiting at the WorldatWork 2017 Conference

 

TotalRewards Software will be one of many leading HR companies attending the WorldatWork 2017 Total Rewards Conference & Exhibition May 7-10 in Washington, D.C. Tagged as the place “Where Big Ideas Begin”, the event will host over 1,200 human resource professionals seeking ideas and solutions around total rewards, compensation, benefits and work-life effectiveness. Attendees can pick and choose from more than 90 sessions with 200 speakers.

Learn more about the WorldatWork 2017 Total Rewards Conference & Exhibition and how to get involved here.

Representatives from TotalRewards will be at the event to discuss the TotalRewards Builder and CandidateRewards solutions as well as weigh in on the importance of total compensation statements and recruitment tools in today’s evolving workforce landscape. According to the Bureau of Labor Statistics, the unemployment rate has been dropping over the last six years and is now at a record low of 4.8%. As a result, there is a smaller pool of people looking for jobs, putting more pressure on HR teams to find and retain the right candidates and often extending already expensive, time-consuming recruiting and onboarding processes.

TotalRewards Software is leading the way to help companies recruit and retain valuable employees by offering software solutions that provide on-demand access and clear messaging around employees’ total rewards beyond monetary compensation, including career path information, vacation time, work-life balance and more. Access to this information can spearhead employee engagement and improve employee retention.

To learn more about the importance of retaining top talent and ways to do this, download the white paper, “Making a High Impact Case for Total Rewards Software.