Upward pressure seems to be the inevitable trend when it comes to employee compensation. After all, the vast majority of employees expect to receive pay raises every year, according to Randstad's research — if not, they'll seek opportunities elsewhere. And what's more, those raises can't be minuscule: The majority of employees also say they'll leave their current employers if raises don't outpace inflation.
With salary numbers constantly in flux and so much at stake, you need a smart strategy that ensures compensation remains competitive at your company. We'll show you how to do that — and how to leverage tools already at your disposal.
the magnet metaphor
When you think of salaries, perks and benefits, think of the opposite sides of a magnet. It's a good metaphor for understanding the similar, and yet distinctly opposite, influence that they have on talent outcomes.
|perks and benefits attract.||As Randstad's research has shown, great perks and benefits packages are the number-one reason employees decide to stay with employers. Down the line, that means a strategic perks and benefits offering should help with retention, too, ensuring your most valuable contributors stick around for the long haul.|
Make sense? Good, because you'll need to keep these two qualities in mind as you think about existing talent pain points at your company. Otherwise, it'll be hard to select the right tool to get the job done most effectively.
arm yourself with the latest data
Someone who will remain nameless famously classified knowledge into four types: There are known-knowns, known-unknowns... well, you know the rest. So when it comes to competitive compensation, don't approach your market as if it were a black box.
But where to begin? For starters, you can get inside intelligence on the latest salary data and compensation levels in your market using a salary calculator. Treat the results as a baseline, and adjust your salaries accordingly.
don't go ga-ga for shiny new toys
Video game rooms. Onsite gyms. Pingpong tables galore. Sure, it seems pretty cool to have all the latest gimmicks on premises at your office right now — just ask anyone who works at a startup. What's more, if you count yourself among the two-thirds of employers today that are struggling to effectively manage millennials, you might even believe perks like these are the secret sauce you need to better engage your workforce.
One problem, though. They won't.
For millennials, as a matter of fact, studies indicate that the top three reasons they leave their jobs are:
|interest in a new role|
|opportunities with better perks and benefits|
|dissatisfaction with their career path at their current employer|
Notice that access to a fridge stocked with draft beer isn't one of them. So if you're going to tweak your perks and benefits offerings, it's better to act strategically — and in the next section, we'll show you how.
ways to move the needle (plus, one closely guarded secret)
When it comes to offering competitive compensation packages — the kind that'll not only lure top talent to join your team, but ensure that you retain them down the line — don't overlook benefits. Below are three simple tips (including one you almost certainly didn't see coming) that should help you get started.
dial in on perks and benefits that really matter
While there's no magic potion to help solve your hiring challenges, identifying what your employees actually need is always a good place to start — and we’ve got the research to back that up. For example, the results of one Randstad survey revealed that almost all employees (94%) want benefits that have a meaningful impact on their quality of life.
In that context, benefits that, say, support greater work/life balance, or allow for more flexible working arrangements, are far more likely to resonate with your employees.
Another suggestion is to focus on benefits that will put money back into your employees' pockets. For example, can you offer to help employees repay college loan debt? If so, that should not only improve retention — and prevent turnover — with your current workforce, but also make your company significantly more desirable in the eyes of top candidates. Among working professionals who have education-related debt, after all, 62 percent would consider leaving their current employer for an employer offering loan-debt assistance, according to one survey.
Finally, if you're struggling to figure out what benefits will have the most impact for your workforce right now, why not use a survey to find out? It's a simple solution, and doing so will likely leave employees feeling more engaged as a result.
Landing top candidates today is harder than ever. Beyond just ever-shifting compensation data, there are new expectations, as well as scary new phenomena like "cold feet candidates," that are sure to keep hiring managers up at night as well.
For more insights on competitive compensation levels in your market, check out Randstad's salary guide, which includes an industry-by-industry breakdown of the latest salary trends. It's everything you need to know to ensure you have the right talent on hand, and can drive your business forward, in the year ahead.