HRi Service Highlight: Compensation Analysis
As business owners know, the key to success is hiring talent that can take your vision and turn it into reality. In today’s competitive market one of the best ways to attract ideal job candidates is to stay current and complete a competitive compensation analysis. Compensation includes an employee’s base salary and additional benefits, such as health insurance, retirement plans, and performance bonuses. The compensation packages a business offers to employees affects the company’s recruitment rate, retention rate, and employee satisfaction.
Important Factors to Consider:
- Competition: It is necessary to examine the companies that you would consider your competition. Look at what other companies in the same industry, of the same size, and in the same general location are offering their employees. This will give you an idea of what you should offer in the current market to stay competitive. Looking at smaller and larger companies can help as well.
- Intangibles: When completing a compensation analysis it is important to keep in mind that what you might lack can be made up in other ways. Employees may be more likely to take a little less pay if they have the freedom and flexibility they wouldn’t be offered at another company.
- Job Specific: Pay close attention to job titles, job descriptions, and the work that is expected of the employee. When creating a competitive salary for a position it is important to ensure that the employee is being compensated fairly for their work, but that the company isn’t exceeding their budget or over compensating.
A compensation analysis is essential to keep your company current in this extremely competitive job market. Your employees and job candidates need to know that they are being compensated well for their contribution to the business. A current and competitive compensation package also shows employees that they are valued.
If it has been a long time since you’ve reviewed your compensation package, a compensation analysis can be completed for current employees to ensure you are keeping up with the current market. Another best practice is to utilize total compensation statements to show employees the total monetary benefits they are receiving, such as benefits premiums, 401K match, bonuses, etc. These total compensation statements can help your company keep up with the market and retain top talent.
Where does HRi come in?
HRi has the expertise and resources to provide compensation analysis for potential employees and open positions, along with total compensation statements and analysis for current employees. Please reach out to us if you are interested in learning more about these services!