In today’s job market, getting competent people is not an issue. After all, the current total global workforce is producing about 100 times more people every year compared to only a few decades back. The most important factor in today’s job market is retaining the employees. And in this context, employees compensation takes on a new meaning. The HR department of any organization has gained a prime spot precisely because of this reason. After all, creation of the perfect employees compensation plan based on the specific requirements is nothing to be brushed aside, if a firm wants to be the best in the field.
Attracting Competent employees
Most employees today have multiple options when they get into the job market. Why would they choose one firm over the other? The answer lies in the benefits and compensations offered. For example, someone might find that company A is offering a higher basic pay, but far lesser benefits in terms of paid holidays and free meals every day compared to company B which is offering marginally less basic pay to employees. Inevitably, he would opt for firm B.
Performance Based Compensation Plan
Ask any happy employee in one of the top firms why they rate their organizations as one of the best, and the answer inevitably comes “Because we are judged fair”. Employees competence in this age has to be rewarded correctly. Accordingly, a compensation plan based on employees competence becomes highly necessary. For example, several of the top firms in IT sector offer employees compensation like raises based on the hours one puts in, not to mention bonuses if one reaches the top pay levels in terms of sales and otherwise.
Focus of Employees Retention
From vacation policy to pet insurances, today’s job seekers go through all the fine prints in the employee compensation part before accepting the joining letter. And why not? With firms vying to retain their workforce after having spent substantial amount of resources training them to get them to the point where they can take on the specialized work they are trained for, it is only fitting.
Compensation and Benefits
From innovative to challenging to downright weird, everyone’s compensation and benefits plan is being made unique. You want free meal passes, very well. Free dermatologist sessions? In house doctors. Free acupressure and hot spa hours? Coupons available. In fact, one can even have free psychological counselling if need be as part of their employee compensation plan. Today’s firms are leaving no stone unturned just to get the best possible result from their employees. In fact, benefits like provident funds and insurance are simply taken for granted nowadays. In the cutthroat world of acquiring the best employee, organizations are ready to go to almost any length needed, even if it is untested.
At the end, what you would need to understand while creating a benefit plan is what would be more relevant to the employees that would be looking to join your organization. Do not shirk back from implementing something new even if it is untested. After all, there is a beginning to all things great.