Creating a compelling compensation package is essential in attracting top talent in today's highly competitive job market. Post-pandemic, attracting and retaining the best candidates has shifted beyond a competitive salary figure. Candidates are more interested in what the role offers them and their current lifestyle.
A well-rounded compensation package that takes into account benefits, incentives and perks as well as cash compensation is key to successfully recruiting, engaging and retaining employees in today’s working world.
Developing a well-rounded compensation plan is easier said than done, every business and industry is different, and you may be working with tight budgets or competing with larger organisations for talent. Understanding the key elements and drivers involved can help your organisation position itself as an employer of choice, securing exceptional talent. In this short guide, we’ll walk you through the steps to help you get started.
1. Conduct market research
Looking at your competitors from time to time is essential to ensure you’re offering competitive goods/services. The same applies to your compensation package to understand current market trends and industry standards. Take the time to research and gather data on salaries, benefits, and perks offered by similar organisations within your industry. This information can be used as a benchmark for developing an attractive and competitive package. Additionally, with tools such as LinkedIn’s Talent Insights, recruitment agencies like us are more than equipped to manage this step for you.
2. Understand what your employees really want
Every individual has unique priorities and preferences when it comes to compensation. Some candidates might prefer a better work-life balance with more work-from-home days, whilst others could be looking towards a higher salary or bonus structure. Finding a middle ground where you can attract candidates who are looking for different things can be tricky. Still, with surveys, interviews, focus groups, and conducting market research, you can gain a better understanding of the preferences of your target talent pool and tailor your compensation packages.
By distributing an employee benefits survey, you’ll have the opportunity to measure how satisfied your employees are with the package you currently offer, how it compares with others, what benefits your staff are looking for and what they would like you to provide more of in the future. Here are a few useful employee engagement survey tools to look into:
SurveyMonkey ----- http://surveymonkey.com
Culture Amp ---- https://www.cultureamp.com
Lattice ------ https://lattice.com
Workvivo ----- https://www.workvivo.com
Workday Peakon ---- https://www.workday.com/
Leapsome ---- https://www.leapsome.com/
HiBob --- https://www.hibob.com/
3. Benchmark salaries to stay competitive
With employers taking back some control of the market, it is still essential that you offer a competitive base salary. Although market conditions might be rocky from a candidate's point of view, in the current economic climate, a competitive base salary is a crucial factor that candidates will not compromise on, before considering the benefits package. Scoping out your competitors is a great way to understand where to benchmark and build from.
To effectively benchmark salaries, start by researching industry standards and regional pay scales. Use salary surveys, industry reports, and tools like Glassdoor and Payscale to gather data. Consider factors such as job role, experience level, and company size. Regularly update this information to ensure you stay competitive. It is also beneficial to engage with industry networks and third-party services to gain insights into emerging trends and shifts in compensation expectations. By staying informed and adaptable, you can offer a salary package that not only attracts top talent but also retains your valuable employees.
4. Showcase and leverage your company’s brand
In the current climate, candidates are prioritising whether they “fit” in with the company culture, values and overall brand. Candidates look for companies whose values and culture align with their own and may even turn down a job offer if this isn’t effectively demonstrated.
It is crucial for employers to effectively showcase their company's values, culture, benefits, and rewards right from the initial stages of the hiring process. This can significantly impact the quality of talent that a company can attract, as it increases the likelihood of finding candidates who are not only qualified for the job but also resonate with the company's overall brand.
To showcase your company's brand effectively, ensure you have consistent branding across all materials, encourage employees to be brand ambassadors, create engaging content reflecting your brand's values (that might be on your website or social channels), share customer testimonials, get involved in community activities, establish thought leadership, and ensure a cohesive visual identity. These strategies can help attract individuals who align with your company's culture and values.
5. Offer professional development opportunities
Offering learning and development (L&D) opportunities to employees is crucial for several reasons. Firstly, it demonstrates the organisation's commitment to investing in its workforce, which can lead to higher levels of employee satisfaction and improved retention rates. Secondly, it equips employees with the skills and knowledge necessary to adapt to evolving industry trends and technologies, such as AI. This not only enhances their proficiency in their current roles but also prepares them for future career advancement. Providing professional development opportunities can help attract top talent, as job seekers are often drawn to companies that focus on employee growth and learning.
6. Emphasise work-life balance as a priority
Since the pandemic, there has been a notable shift in employee preferences towards a more balanced lifestyle. There is a growing reluctance to commit to a traditional 5-day office workweek due to the time, energy and expense of commuting – many feel it is unproductive.
Highlighting your organisation's work-life balance initiatives will only strengthen your position in the market. Candidates look for flexible work schedules, options for working remotely, and annual leave or parental leave benefits before considering a role. By showcasing how the benefits and incentives you offer have a positive impact on employee satisfaction, productivity and overall well-being, will attract candidates who are looking for a nurturing and rewarding work environment.
Creating a competitive compensation package is essential for attracting and retaining top talent in today's job market. By conducting market research, understanding employee preferences, benchmarking salaries, and showcasing your company's brand, you can create a compelling and attractive package that not only offers competitive compensation but also aligns with the values and needs of your potential and current employees. Remember, a well-crafted compensation package can be a valuable tool in positioning your organisation as an employer. If you’re not sure where to start, we have the tools at our disposal to help you understand where you are in line with your competitors and develop a strategy to stand out from the crowd.
Get in touch with us today, to find out how we can support your hiring needs.