3 Reasons Compensation Planning is a Must
Do you know if your compensation package is competitive in today’s market? Compensation planning provides benchmarks and industry standards to help you make the best decision for your business. It is important to reevaluate employee pay, benefits, bonuses, retirement, etc. on a regular basis (we recommend 18-24 months).
Here are some examples of why compensation planning is vital to your business:
1.Retain and Motivate
Employees want to know they have the potential for growth within your company. Providing a pay scale for their current role, or a road map of compensation for their potential career path, gives employees something to strive toward. Knowing they will be compensated well for the work they are doing can be a big motivator to help employees reach goals and boost company productivity.
2. Attract Top Talent
Having a competitive compensation package can help put you above the competition in today’s candidate–driven job market. Using compensation planning can show you where your offered benefits fall in line with other businesses in your job market. Applicants want to work for a company that offers not only great pay, but benefits such as decent health plan options, retirement savings plans, incentives, and bonuses.
3. Practice What You Preach
Company culture has quickly become a major factor in an employee’s willingness to take a job and stay. Companies across the globe are stepping up their Diversity, Equality, and Inclusion (DE&I) initiatives, and it is important to show applicants and employees that you are taking your company’s program seriously. Having a compensation plan in place can help eliminate the chances of discrimination, because your pay ranges will be geared toward the position, not the person.
Are you ready to create a competitive compensation package to attract and retain top talent, showcase your culture, and remain legally compliant? Integrity HR is here to help! We have developed a proprietary process to develop a comprehensive compensation plan for your business!