11 Sep 5 Ways to Build a More Powerful Compensation Strategy
Every organization needs a compensation strategy. Its purpose is to help you decide how much to pay employees by aligning with your overall HR strategy. According to the Employer’s Resource Council, strategic compensation also tells employees where you stand on pay, which can be useful in creating a compelling employee value proposition for attracting and retaining talent.
Here are some ways you can get the most out of your organization’s compensation plan by tailoring your strategy:
- Don’t Overlook Location: When analyzing market data to compare salaries, com says that location is just as important as job title. You must factor in both components if you’re looking to pay competitively.
- Determine Your Top Talent: Find out which talent is in the greatest demand for your organization right now. Then, make sure your strategy incorporates ways to attract and retain these key employees. You may need to do a little research to determine whether specific staff shortages will be a temporary issue or an ongoing one in order to make informed pay decisions. Build your strategy in a way that allows you to update your compensation plan as your staffing needs change.
- Leverage Your Total Rewards: To build a strong compensation plan, figure out which total rewards matter most to employees and factor them into your program accordingly. The Thriving Small Business discusses how some employees actually wind up staying with their companies in part because the benefits are too good to leave.
- Become Transparent: Having a pay strategy in place allows you to be more upfront with employees when it comes time for discussions about salary and bonuses. More and more workplaces are increasing their levels of transparency, and by discussing how your company’s compensation practices, you can give employees clarity which may enhance trust.
- Train Managers: Lastly, a positive employee experience is directly related to how well they interact with their managers. Strengthen the employee/manager bond by training managers on how to have meaningful, effective conversations about pay with their teams.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Compensation Management Software, COMPview, click the button below!