How to Design an Attractive Compensation Package
Designing an attractive compensation package means you need to understand what your potential employees are looking for and what they want.
It shouldn’t surprise employers that money is the top reason that people quit their jobs. If an employee isn’t being properly compensated, they will find employment elsewhere.
As an employer, it’s your responsibility to design a compensation package that will help you attract and retain talented employees. But how do you even get started?
Let’s talk about it. Read on for a few tips that can help you start creating an attractive compensation package for new and current employees.
Consider Your Budget and Capabilities
The first thing you’re going to have to do when you’re trying to figure out the right compensation package for an employee is to consider what you’re actually capable of providing. Your budget will determine how much you’re able to spend on each employee.
You should not try to offer the bare minimum, even if your budget is small. That said, keep your margins in mind. Make sure that you’re dividing your employee benefits budget so you have packages for all of your employees.
It’s a good idea to leave some “wiggle room” so you can make adjustments later, offer bonuses, or take on more employees if necessary.
Determine What Employees Want
What kinds of job perks do employees want anyway?
This varies depending on the employee. Some employees would rather have more vacation time than stock options. Some prioritize fantastic health and dental insurance and are willing to forgo a marginally higher paycheck if they’re able to get that.
There are also non-monetary employee incentives, like employee wellness incentives, memberships to gyms, and so on.
It’s not a bad idea to poll your current employees to ask what they’re interested in. The incentives are for them, after all.
Consider Your Competitors
When you’re trying to find new employees, you have to have an attractive compensation package. If you don’t, someone else will be able to take that potential employee from you because their benefits are better.
You need to give potential talent a reason to join your team.
What’s the average pay for employees within your niche? What types of benefits are other businesses offering, and how can you compete with them?
You don’t have to match other businesses, but you have to offer something equivalent. For example, if you’re unable to provide a “fancy” working environment with amenities, you’ll want to offer higher pay or a better vacation policy.
Adjust for Employee Experience Level
You should strive to treat all of your employees well and ensure that they all have great compensation packages. You will also, however, keep their experience in mind.
A brand new employee who’s also new to the field may have a smaller compensation package than a new employee who has internship experience, industry experience elsewhere, or extensive education. You’ll also offer your long-time employees better compensation packages.
Make Your Employee Compensation Package Appealing
Creating an ideal employee compensation package that won’t break your budget but will still attract fantastic employees is challenging. You can use these tips to get the ball rolling.
Remember: your employees deserve to be compensated well for their hard work!
At JSK Recruiting, we want you to find the best job candidates for your open positions. Contact us to learn more about what we can do for you today.