In order to attract and retain the “right talent,” each business must have a clear philosophy/strategy around compensation and rewards. Today, with the uptick in the economy, you need to be sure that your compensation plan is able to attract, motivate and retain your employees.
As you review your company’s compensation strategy, listed below are some questions you should consider:
- Do you want to implement a pay for performance culture?
- Should you create an incentive plan or continue with the profit sharing plan?
- How often will you benchmark your salaries against competitors?
- What is the right type of pay system for your sales force?
- Should you consider a stock or equity plan for key performers?
- Do you need to develop salary grades and ranges for each position?
- How will you manage the pay system to ensure internal equity?
- Do your job descriptions accurately describe the expectations for each position?
- Should you implement an incentive plan for production employees?
- Will you establish a salary increase budget every year?
- How will you allocate the salary increase budget to your employees?
- Should you implement a formal annual review process?
If you want to continue to grow your company, it is important to develop a compensation strategy or philosophy that is in alignment with your business strategy and goals. You must be able to communicate what you are doing, why you are doing it and how it impacts not only current employees, but applicants as well.
For more information on how Human Capital Consulting Partners can assist you in developing your company’s recruiting process, contact us.