MightyRecruiterIf your employees aren’t being paid a fair wage for their work, they’re less likely to give their all to their work. After all, what’s the use of doing great work if you’ll only get mediocre pay? Receiving a bump in pay is both an acknowledgement of good work and an incentive to keep up with that good work and take it to the next level for another pay increase. When you do start creating compensation strategies for good employees, make sure the compensation matches overall performance and isn’t a paltry increase that’s more of an insult than anything else.
Keep Employees Emotionally Invested in Their Work
Going back to the above suggestion, when you give employees a slight pay increase that doesn’t fully match the work they’re producing, they tend to merely go through the motions of their work and only do enough to meet the bare minimum. Your company is bound to suffer if employees are running on automatic, making it harder for you to make a profit in order that you can give employees the pay they deserve, which dissolves into a vicious cycle.
Attract Good Employees With Good Pay
Don’t forget to account for the employees you don’t yet have while you’re developing your compensation strategies for good employees. Specifically, you’ll want to take a look at what other companies in your industry are offering for the same job position for which you’re hiring. When you offer pay that’s at or above the prevailing market wage, you have a better chance of attracting applicants who have the experience and education you’re looking for. These employees know their worth, and they know you value that worth when you show you’re willing to pay for it.
Don’t Risk Losing Employees
Employees are more aware than ever of the possibilities and opportunities that are available to them, and you should be as well. While some employees might be willing to remain with your company if you only offer them a minimal pay or bonus increase, others will not hesitate to walk out without so much as a one-week notice. Don’t just give employees a good peer review, show them you appreciate their hard work and dedication with an adequate pay increase. If for some reason you’re simply unable to give them the pay increase they deserve, tell them why and what you intend to do to make up for it in the meantime. Employees can be more understanding than you might realize if they know you’re making just as much of an effort as they are.
Let Employees Know How the Strategy Works
You can avoid a lot of confusion, misinformation and frustration by sharing your compensation strategies for good employees. While there might be certain sensitive aspects of your strategies you may not want all of your employees being aware of (especially if they aren’t known for discretion), they should most definitely know how you decide to award raises and bonuses. If they do, they’ll understand why they might be passed over for raises in the future and what they can do to ensure raises.
Offering Benefits and Perks
In addition to (or instead of) pay increases, your company may offer employee perks and benefits. Some employees may be fine with an average salary if it means they’re able to have health insurance or the option of working from home. The modern day workplace has changed, and today’s employees prefer, and sometimes expect, a better work-life balance. After all, what’s the use of receiving a high salary if it means you have to burn yourself out every week in order to show you’re deserving of that salary? While you might want to offer specific benefits or perks for your compensation strategies for good employees, you have to bear in mind that your company has to have the profitability to offer those benefits and perks. Is it time to give your company compensation strategy a makeover? You can find more tips on offering your employees fair pay and other strategies for making your company stronger by exploring the all-star tools and articles here on Mighty Recruiter.