A competitive salary plays a vital role when it comes to attracting and retaining the best people. If your business does not offer a competitive pay package, you may be putting yourself at risk when it comes to sourcing top talent. A smart salary policy can in fact support your business. It’s time to start looking at salaries as an investment that can deliver healthy returns, as opposed to a standard operating expense for the business.
A competitive salary shows you care
A carefully constructed salary policy shows you are committed to your team, and this in itself can be a tremendous incentive for staff. It incentivizes employees to do their best for the organisation, promoting employee engagement and encourages loyalty. Having proper salary policies in place is a tangible way for your business to show its commitment in taking care of their people, which is likely to be reciprocated if you ever find yourself in tough times.
Low salaries are false economy
If you want to attract and keep top talent on the payroll, you need to adjust your remuneration policies to ensure offers for talent match or exceed averages in their location and industry.
If employees leave your company the impact on your business can be significant. Project timelines may suffer – costing the company additional time and resources to resolve; re-staffing comes with an additional cost burden; not having the right person on board may mean the company isn’t able to reach its growth targets. Financial repercussions like this can be avoided simply if a competitive salary policy is in place.
People as assets vs expenses
It can help to view your employees as assets of the business – bringing knowledge, experience and loyalty which only adds value to your business.
Top talent are often courted and poached by hiring managers and head-hunters. Even if your top employees love what they do, they may have no issues accepting the next best offer if they aren’t being rewarded with a competitive salary.
The challenge for you is to stay up to speed with current salaries, so do some research such as using an industry benchmark or salary guides.