How Compensation Impacts Retention
Compensation has been impacting companies retention for many years, but in the last year alone we saw “61% of respondants say they’re paying employees more than they were one year ago”. With this rise of expenses, companies have been struggling to retain their top talent. We can combat this by restructuring the current expenditures. Your company will have to bring all of the budgets together and get a finalized number. This number should be doubled and that will determine what the company should have put away for two years to keep the business open. To keep your overall business expenses low, which may seem simple is going through every expenditure and determining what budgets can be lowered. If you have extra expenditures you may not be able to retain your top employees with the compensation crisis employers are facing today. It’s important to be honest to your employees. You can tell them “We are not doing layoffs but we are not doing substantial raises either”. By being honest you're telling your employees you want to keep them in a job. Another easy way to keep your employees is by asking them what they need in order to stay. Accommodating employee’s needs is a simple way to keep your business prospering by using your top talent efficiently.
Employees were asked what they need to stay with a company when they have been offered more money at a larger company. “26% of employees said benefits while 32% said their work environment”. Companies can improve the work environment by talking to their employees and involving HR at their table. HR can be the outlet for disgruntled employees while being the input for the solution. Most HR representatives in companies don't have a seat at the table. By allowing your HR representatives to be in the conversation you will have more employee insight. Insight into your employees is the most valuable asset to your company. They will tell you what's not working from the ground up which in turn will allow you to make decisions on what's important to your company from within.
Employee retention is hard in today’s economy but we at B. Stephens HR are happy to be in a seat at your table to keep your employees happy and your business prospering. Let us know how we can be of service to you!
B. Stephens HR Consulting