(By: Brittany Brooks)
Are you missing the mark with potential top talent? Having a hard time keeping top talent?
4.3 million employees quit their jobs in December 2021 alone.
There are a lot of factors fueling the ‘Great Resignation’:
- Wanting job satisfaction
- Avoiding vaccine mandates
- Wanting to work from home and many other reasons
However, one of the top reasons for employees quitting their jobs right now is for better pay. Offering low compensation:
- Doesn’t necessarily save you money
It takes roughly 42 days to fill an open position, and it can cost you approximately $4,129 to hire the employee, considering the cost of job ads, manpower to recruit, training hours, etc. If the pay is too low and the new hire decides to resign for another job within a short period, you’ll be paying those costs again.
Now, think about losing one of your best employees. That could cost you more than monetary costs in the long run because a seasoned employee is more invested and may hold high-priority responsibilities.
It is possible to find another employee of that caliber from the start, but it may be challenging. Until their position is filled, you’ll have to redistribute their workload to other workers, and hopefully, they feel they’re compensated fairly.
If not, you might be receiving a few more emails with 2-week notices in them. It’s unfortunate because losing these employees can be avoided by offering a little more compensation.
- Declines the quality of work
Offering low compensation can directly impact your company’s productivity, customer service, morale, etc. Some employees may only exert a certain output level that they deem equivalent to your wages, and once that level is reached, the buck stops there.
They may begin to work on personal projects, surf the internet, or however they’d like to spend their time, aka your time. When they are doing their work, the quality may start waning because they’re physically present, but not mentally present to do a better job.
Besides the quality of work, the potential candidates you’ll attract may be of lesser quality. It’s no secret, when you’re underpaid, you’re less likely to go the extra mile. Well, if you feel that way, why wouldn’t your potential candidate feel the same.
Bad news and rumors travel fast, and if your low compensation happens to be the bad news, it won’t have a problem getting around.
Think about the time you told a friend or family member about a job you were interested in, and they stopped you dead in your tracks with a statement along these lines, “They don’t pay hardly anything, don’t waste your time.”
And guess what…you didn’t! You probably moved right along to the next job willing to pay a competitive compensation. Now, what if your company is offering the job they’re talking about?
Something like this can deter top talent from wanting to work for your company.
Of course, the solution to all of this is to offer competitive compensation, but that’s not all. 63% of employees find employee benefits and perks just as important as compensation. Unveiling the real resolution, create a comprehensive compensation package.
Create a Compensation Package
A competitive compensation package includes the employee’s wages/salary, employee perks, and employee benefits. Incorporating these elements could help improve your recruitment efforts, retention, and employee satisfaction.
What to include:
- Compensation that either matches or is above your industry market standard
Offer employee benefits that matter the most to potential candidates, top talent, and your employees.
- Health insurance
- FSAs, HSAs
- Dental and vision insurance
- Life insurance
- Disability insurance
- Retirement plans
- Tuition reimbursement
- Paid vacation days
Employee perks can act as the icing on the cake in a compensation package.
- Office snacks
- Casual Fridays
- Discounts to gyms or other memberships
- Access to wellness programs
- Company lunches or dinners
- Home office budget (if working from home)
Rolling employee benefits, employee perks, and better compensation into one package is a sure bet in today’s employment world. Employees don’t want one or the either anymore, they want the whole package, and that’s okay.
Need help figuring out which employee benefits suit your company better? Speak with Zupnick & Associates for details about your specific situation.