ExecutiveChronicles | How To Avoid Losing Talent Due to Unfair Compensation | Many businesses have a set pay structure. This certainly doesn’t make it the fairest system. The main principle is that new employees start on a set wage. They then get reviewed and will generally get a small pay rise every year.
Over time this can add up, meaning that employees who have been with the company for a long time are getting paid substantially more than those who have just started, even if they are not as effective at the job.
The assumption is that their years of service equates to valuable experience. In reality, it means that many people are not paid according to their skills or performance.
The result can be a costly case involving a local compensation lawyer Burwood. It’s better and more cost-effective to take steps beforehand to ensure your staff are looked after and you don’t lose talent due to unfair compensation.
Identify Your Talent
In theory, every person on your payroll should be a talent. That means they are all dedicated to the company and bring value to it in everything they do. If this is the case you’re doing well. Of course, for many businesses some specific employees have more experience, try harder, or are simply more skilled in certain areas. These are the ones that are fundamentally necessary for the survival of your business. You need to hold onto them.
Assess The Industry Rate
In order to keep these employees, you are going to need to verify what the going rate in your industry is. This can be done by talking to other companies, asking industry representatives, and even looking at currently available jobs.
You can even chat with the employee to see what they think the going rate and compare it to what you have discovered.
Knowing the rate means you know how much they could be offered elsewhere. The closer you are to this rate the less likely it is that the employee will leave. If they are really valued and you can afford it you can even go over the going rate.
Of course, compensation is not just financial. You can create a package for your staff that makes it less likely they will want to leave. That means ensuring they have health cover through you. It is also a good idea to contribute to their pension scheme and even make sure they have death cover. These benefits are less tangible but still appreciated by employees.
Don’t Forget Morale
You can give them the best package in the industry but you are still at risk of losing key staff if they are not happy in their work. It’s important to assess the morale of the workplace and look at different ways to improve it. Don’t underestimate how important this is. A happy employee is more productive and loyal, making it less likely they will think about leaving.
Have regular staff events and perks to ensure morale is high and tackle any issues straight away.