Your compensation program is only one part of the overall strategy that makes your company an appealing place to work. Employees don’t decide to remain with or leave an organization because of compensation alone; high retention rates are the result of a blend of tangible and intangible rewards. One study by the Society for Human Resource Management found that incentive compensation plans often don’t have the effect that managers expect, because “pure dollars are never the ultimate driver.” Working with an HR consultant can help you understand how your various initiatives interact.
A deep understanding of your industry is essential
Compensation planning will of course look different for different companies. How do your salaries compare to others in the same space? If you don’t have a current, solid answer to this question, you have some work to do. Depending on your industry, salary may not even be the main component of your employer brand reputation. Other key aspects to recruiting and retaining employees include:
- Work life effectiveness
- Retention programs
- Advancement opportunities
- Other “perks” such as flexible schedules, work-from-home options, personal control over projects and support for continuing education
HR consultants experienced in compensation planning can help you identify and roll out the plan that puts you ahead of your competitors.
Keys to managing your compensation plan
Agility is crucial. A compensation plan that works today may need to be adjusted in the future as the marketplace or your workforce evolves. A good long-term view also enables you to remain consistent as new hires are brought on, positioning your compensation strategy on the leading edge despite marketplace changes.
Working with an HR consultant can help tie all these pieces together and ensure no area is overlooked. Contact SilverStone Group today to learn about how we can work with you to analyze and develop a compensation plan that optimizes your employee retention.