Competitive pay can be a tough process for HR executives — with everything to consider from when to offer bonuses or raises, to how to keep employees happy without sacrificing the bottom line. Employees expect to be rewarded for their work and paid fairly. 2018 salary trends show that competitive rates are being driven by the 4.1 percent unemployment rate and increased wages. So, what exactly does this mean for employers?
Evaluate your current policy
First and foremost, evaluate your current competitive pay policy. What does the language convey to your current and potential employees? Make sure it’s clear and to the point so no surprising questions pop up. Whether you’re interviewing new employees or negotiating with current ones, keeping your pay policy up to date shows transparency, helping to maintain trust.
Invest in your employees
In a recent survey, 32 percent of employers plan to put a percentage of their income tax savings into employee reward programs. By investing in your employees through bonuses, raises or other incentives, you’re setting them — and your company — up for success. Not only does this reward employees for their hard work, it also boosts company morale and employee retention. Investing in employees doesn’t have to always be through pay, either. Offer a wellness program or growth opportunities to keep employees engaged and loyal to your company for years to come.
Stay transparent
As mentioned above, staying transparent with your pay policy will minimize conflict and confusion among employees. Make it clear that when employees advance to the next level, they can expect a raise, or when they achieve a goal, they have the opportunity to receive a bonus. Most importantly, constantly look at your pay policy and look out for pay inequities. Pay attention to industry trends or what your current employees are seeking, and adjust accordingly, if necessary.
At the end of the day, competitive pay isn’t just about who gets paid more, but rather keeping an even playing field across the company, and being flexible against the competition in order to retain the best talent.
For more tips on paying employees, visit the WorkSmart blog!
Recent Comments