Striving for strong employee retention is a crucial part of stabilizing a company. Today’s workers make their decision to join, stay with, or leave a company based on a number of factors. These include company culture, growth potential, and compensation.
Determining the proper and “fair” salary for your employees can be more difficult than you’d expect. Salaries for certain jobs can differ significantly by region, some industries are more subject to exhibit changes in average compensation, and employers should also be paying attention to cost of living in the areas where their employees live.
To gain a better understanding of salaries and how to develop a plan around retention and salary adjustments, employers can begin by following these steps:
Dig into Adecco’s salary guide as a starting place.
The guide provides an in-depth look at the salary ranges for many positions in the U.S., giving employers a more informed frame of reference. Employers using the guide will have access to accurate salary data and up-to-date regional salary data based on job market expertise that is paired with research from CareerBliss. Use the guide to look at variances for your local job market, as the cost of talent varies by location. Employers will also find updated job descriptions and examples of how jobs today are being listed. Finally, the guide offers key insights for retention and the development of compensation packages that keep employees invested in the long-term.
Identify your top performers.
It’s important to look at a baseline for where your employees should be at salary-wise based on their position, but it’s also critical to identify and reward the individuals who stand out as key players and top performers. These are employees that consistently move the needle, execute well on large projects, and help lead others. By identifying these top performers and showing them that you appreciate their work, you’ll increase retention and overall employee satisfaction — and likely drive a sense of healthy competition and a culture that respects individual contributions. These top performers will appreciate discussions around compensation or even a plan based on bonuses for performance.
Prepare for End-of-Year performance reviews.
Employees appreciate having a path in place that helps them to understand how their work is being received and what their opportunities are for growth and financial raises. As the fourth quarter approaches, don’t wait to take a close look at employee performances on an individual level and plan ahead for EOY reviews. Identify your top performers as well as individual who need to contribute at a higher level. Plan discussions and compensation points for both categories.
It is always wise to revisit your compensation plans for your employees. A salary is an aspect of work that has a direct impact on the personal lives of each of your employees in a very tangible way. By ensuring that your employees are receiving fair compensation, you’re making an investment in their satisfaction that translates into better productivity. An employee that feels fairly compensated will have stronger morale and contributions within the workplace – and your company benefits from an invested team that is more likely to see themselves with the company into the future.