If you want to be an organization that attracts the best kind of talent, you should consider taking a look at your employee compensation policies. Managing compensation is a challenge for all businesses and it’s of crucial importance to employees as well. Finding a system that fits the needs of both parties is essential for a successful business.
Here are 4 examples of changes you can make to employee compensation that help both you and your employees.
Annual Incentives that are Self-Funded
Variable pay programs have become more popular than ever. One the biggest advantages of this particular kind of plan is the self-funded nature of the program. It is based on a bonus pool that is established from new revenue employees helped bring in or savings that have been found internally. Either way, it’s a great way to have all your employees feel like they are working towards a common goal and benefiting from the success they have helped create.
Reducing Hours for Less Pay
There are many employees who might interested in reduced working hours in exchange for less money. Numerous studies have shown that the standard working week can be detrimental to health, especially for workers who are 40 and older. They may already be relatively financially secure and just looking for some supplementary income. It’s a great way to tailor the position to real number of hours needed to do the job. The employee benefits through less hours and the employer through reduced costs.
Customization of Benefit Packages
Employees are looking for compensation packages customized to their needs and employers are starting to notice. They are giving employees the ability to opt into different benefit programs based on their need. Workers in their 20s, 40s and 60s all have vastly different needs and benefits should reflect this reality. Some of the interesting optional benefits companies have been offering include optional life insurance, pet insurance, financial advising, legal service and disability coverage, just to name a few examples.
Health and Wellness Benefits
Benefits play a critical role for both employers and employees. Employers are looking to reduce costs while employees want access to the benefits they need. This has result in many employers offering healthy lifestyle incentives and welless programs for their employees to reduce the cost of benefits programs. Offering health lifestyle incentives to your employees can be an attractive perk as part of a compensation package that both parties benefit from.