logo

Here’s What Makes An Effective & Attractive Compensation & Benefit Strategy

Are you one of those adventurous people who want to do something of your own? Or are you the one who wants to upscale their small business? Whatever may be the case, you will require a ‘good’ team to take your back.

Starting and running a small business has many challenges in its initial stage, but when time passes by, everything starts to fall on track. Being a business owner is not easy. It requires a lot of consistency and efforts. Not only that, your team should be as consistent, hardworking and dedicated as you.

Dream Team of an employer

Talking about your dream teammates, today many potential aspirants are looking to work. But, it often happens that your ideal employee may not land with you but with your fellow competitor.

So, how can you ensure that the next time your dream team comes to reality? To make it happen, you need to develop a magnet to attract these job seekers to your company. Let’s be honest, among several things a job has to offer, compensation and benefit is a key influential factor.

1. Have a structured plan towards what you would pay as compensation

It’s not a deal before it is done.’

You heard it right! It is not a deal before it’s done. But, what does it have to do here?

Imagine, you are a job-seeker who has everything a company needs. Everything was going right till they came to know about the compensation structure of your company.

Why does the structure of the salary matter?

It matters a lot! An employer agrees to work with any organisation or a company on two cases. First, the company is a renowned one and would add value to the employee and second, the company offers decent pay with a defined structure. It matters being an employee that apart from what was decided, what they will get in hand.

Many companies hire employees at a very decent CTC but their in-hand pay is low (which the employee comes to know later).

Hence, having a well-structured salary slip is very important because it leaves a lifetime impression on the employees’ mind about your dedication and competence as an employer or a business owner.

In Hand Salary received by an employee

2. The location and workload matters

Is the location of the employee a big deal? Yes, it is!

Companies that are on their nascent stage cannot afford to include the travel expenses of every employee. Moreover, spending hours to do up-down isn’t feasible as an employee in the long run.

Thus, it becomes important to know that from where an employee is coming from? Is he/she residing too far? If yes, then focus on hiring the employees who either reside within a few kilometers of radius from your centre or provide that distant job-seeker WFH option.

Distance to Office

3. Talk openly about what you would pay to your employees.

As discussed in the first point, a well-structured payslip is very impactful. Similarly, a clear display of how much you would pay openly also counts as important these days.

Earlier, the salary used was decided behind the doors but, that’s not the case anymore. Top candidates prefer companies who are transparent about their pay. Even if your pay isn’t as much as your fellow competitors, you can still balance it out by the benefits and value you would offer to your coming employees. In that case, be clear about the added benefits. If the monetary value is low, communicate the spiritual and the emotional value. You never know what drives people!

Discussion about salary structure with new employees

4. Think beyond the salary you would pay.

Have you ever thought about why employees leave their big companies despite having a large sum of money? It is because of the work pressure and decline in benefits that were promised while hiring.

Employees are humans too! And being an ideal employer, you should try to establish an emotional connection with your dream teammates. So that they can be a part of your success in the long term.

You can provide the following benefits to your fellow workers to maintain employee satisfaction.

  • Paid sick leaves
  • Maternity and paternity leaves
  • Medical support
  • Health insurance (if possible)
  • Bonus for extra hard work
  • Rewards & Recognition
  • Sponsor their continued education
  • Flexi Hours

Employee satisfied with the benefits

Given the current circumstances, amid the pandemic, the way many companies have emerged to provide monetary and emotional support is highly appreciated. It is the extra-efforts like these which set one employer apart from another.