Employee retention is key to the success of any business. And let’s face it, no one wants to be in a constant negative feedback loop of hiring.
Employment is a classic give-and-take relationship. And one of the reasons many employees leave a job is because the work outweighs the compensation. No one likes to put more into something than they get out of it.
So if an employee feels like they aren’t being compensated appropriately, they’ll hand over their two weeks’ notice, making today’s employees bold. Gone are the days of being loyal to a company because you felt you had to be. Today, workers are willing to go after what they want. And that means you have to be willing to offer competitive benefits to attract employees and keep them!
So what should you be considering when it comes to creating a worthwhile compensation package for employees? Here are some benefits you should think about:
- Salary and offering competitive pay
- Health insurance
- Life insurance
- Paid vacations and holidays
- Retirement package
- Tuition reimbursement
- Goal tracking and rewards (this can be especially helpful for a sales team)
- Opportunities for personal growth
Take a look at what other companies in your industry are offering. This will help you decide what your own compensation package should look like. And remember, when talking about your compensation with prospective employees, don’t broach it as just what they get in return. Rather, talk about how it fits in with your company culture.
Wait, What Do I Get in Return?
Besides higher retention rates, you may be asking what else do you get out of this deal? It might feel like you are shelling out more just for people to do a job. But in reality, great compensation packages offer companies more benefits than better retention rates.
When employees feel appreciated for their hard work, they actually become more productive and do better work! Simply put, happier employees are better employees. These positive attitudes are contagious around the office and that positivity becomes ingrained in your company culture.
Sharing is Caring
Yes! Your compensation package is part of your company culture. Many employees view compensation as a sign of whether a company cares about them as more than just a warm body doing the job. People want to know that a company cares about employee needs. And those needs include being able to pay the bills, get the healthcare they need, save for retirement, or take a vacation when they need a mental health break. What you have to offer employees says a lot about your company’s culture.
Once you implement a great compensation package, you’ll see a more positive workplace culture and higher retention rates. And by the way, your HR department will thank you.
Ready to build a culture that improves employee retention?
Try the Workzinga Culture Alignment Assessment! Our pre-hire assessment finds candidates that best align with your culture, making them more likely to stick around in the long run. Schedule a demo today to learn more!