The strategies you use to develop a compensation guideline for your company is a critical part of a successful operation. In addition to ensuring you stay within your budgeted range, these strategies can also help lure high-quality talent. Ensure you know which strategies to implement for your company to stay on top.
Salary Range Guidelines
Start your efforts by establishing a salary range for each title within your organization based on budget, demand, and responsibility of the role. This range is just a low and high end for a particular role. Where an employee falls within the range will have to do with their education, experience and other knowledge pertaining to the position.
One of the more critical things this does is to ensure you are not going over budget when recruiting applicants. It also offers flexibility in the event you are recruiting a high-value applicant that has offers from other companies, requiring you to increase your offer.
Performance Management Reviews
To ensure you're compensating your employees as they deserve, it's also important to implement a performance management system. A performance management system is basically an evaluation method that verifies each employee is adhering to their guidelines as outlined per their role responsibilities.
Employees that are consistently performing above and beyond can be compensated additionally for their efforts. However, those employees that are not performing as necessary may face penalties, such as a demotion. A performance management system will better help you determine when it is necessary to provide your employees with raises.
Benefit Package Evaluations
It's also a good idea to make it a point to routinely reevaluate your benefits package. A benefits package isn't something that remains the same. As your company evolves and the type of employees you recruit evolves so should the benefits offered in your package differ.
One of the primary advantages that this process can offer is that it ensures you are staying competitive and therefore, appealing when it comes recruiting the top talent. As part of the evaluation, you want to be mindful of the retirement and health benefits you offer in addition to other terms, including tuition assistance and gym memberships. For many professionals established in their career, the top of benefits offered may be a determining factor.
Effective compensation strategies can keep your organization successful and ensure you are taking care of your talent properly, which is vital to keeping your team happy and productive. A consulting firm likeFox Lawson & Associates, A Division of Gallagher Benefit Services Inc. can assist you with implementing several other practices to evaluate your compensation structure.