Attracting and retaining top-quality candidates in your industry requires a multi-pronged approach. Your recruiting team, hiring managers, and upper-level management all work together to create compelling job descriptions, conduct candidate assessments, and establish a desirable work environment.
One of the best ways to attract talent to your organization is through competitive compensation plans. While more traditional options like bonuses and pensions still exist, the components that make up an attractive compensation package have shifted.
In order to remain relevant in a highly-competitive job market, companies are turning to more practical and modern compensation models. Dynamic compensation plans that address the needs and desires of individual candidates are becoming the norm.
Instead of using cookie-cutter pay structures, employers are using the data they’ve acquired from their employees by technology like Crosschq to help them establish their compensation plans which are measurable, performance-based, and meaningful.
Out With the Old, in With the New
With remote work becoming more common, many of the perks of in-office work have grown obsolete. Rather than focusing on hours worked, employers are turning to metrics that gauge performance and effectiveness.
Crosschq Analytics allows companies to track employee performance and establish compensation and benefits that encourage workers to perform at a higher level. With real-time analysis, you can gauge both individual and team performance in relation to compensation.
For example, do you notice a better overall performance when employees receive a bonus versus commission? Is there less turnover for employees above a certain pay rate? How many employees are enrolling in health benefits? Does adding dental, vision, or 401k plans increase employee interest and engagement?
What Does a Modern Compensation Plan Look Like?
A modern compensation plan looks different for every company. In fact, the fundamental characteristic of a modern compensation strategy is flexibility, and it extends to the entire workplace, both in-house and remote. Remote work has opened the door for more flexible work schedules that allow employees to work around their personal lives.
Rather than clocking in and out on a regular 9-5 Monday-Friday schedule, employees work early mornings or late evenings, take longer breaks, and walk away to complete important tasks like picking their kids up from school.
While this loss of direct control makes some companies uneasy, there is overwhelming evidence that more flexible work schedules actually increase employee productivity, in addition to creating a more pleasant and relaxed company culture.
Flexibility in your compensation plan extends beyond work schedules. It can include flexible PTO and sick days, tiered health benefits, a personalized bonus structure, and pay scales that reflect employee performance and industry standards.
Crosschq Analytics AI technology allows you to analyze employee performance and retention data in real-time so that you can tailor your plan to the particular needs of your company.
Factors to Consider When Establishing a Modern Compensation Plan
Creating your modern compensation plan requires the use of comprehensive data and analytics, but that means more than just compiling information. To build the right plan, you need to know what to look for. To create the perfect plan, consider the following:
Compensation Plan Factor #1: Competitive Pay and Benefits
When you are recruiting new employees, one of the primary deciding factors is salary. Even if you are an excellent company to work for, offering pay that is lower than industry averages is a good way to lose top talent to the competition.
Instead, be sure that your pay structure, including hourly rates, salaries, bonus structures, and commissions are competitive for your industry. Similarly, be sure that you offer attractive benefits such as affordable health insurance, dental and vision coverage, and flexible PTO options.
Compensation Plan Factor #2: Employee Return on Investment
While you do want to remain within your budget, consider the employee ROI when determining compensation. It can be tempting to offer new employees a lower salary, but employees who don't feel adequately compensated are less likely to perform well.
Ultimately, employees who feel they are under-compensated can lose interest, become disengaged, and eventually leave, costing your company more in the long run.
Compensation Plan Factor #3: Personal and Professional Growth
One of the primary reasons that employees leave their jobs is lack of job growth. Employees want to feel challenged and valued. A modern compensation package is a great way to establish an environment that nurtures employee growth and advancement.
By incorporating educational programs, free training, and tuition compensation, you show your employees that you care about their personal and professional growth. This fosters a sense of unity and loyalty that will keep high-performing employees satisfied and engaged.
In addition, be sure to offer opportunities for growth within the company in order to foster loyalty and reduce turnover.
Compensation Plan Factor #4: Performance-Based Compensation
Finally, it is no secret that positive reinforcement is a major motivating factor. Targeted analytics can help you determine the best way to leverage bonuses, commissions, and other incentives to promote engagement and improve productivity.
Crosschq's AI technology helps you track and analyze employee performance so that you can find the best way to reward your employees and keep them focused on common goals.
Use Crosschq to Build an Attractive Compensation Package
As more and more companies turn to remote work, compensation packages are evolving to reflect the new normal. Tailor your compensation packages to attract desirable candidates by using Crosschq's cutting-edge data analytics software and AI technology. Collect and analyze pertinent data on recruitment strategies, employee performance, and turnover so that you can create a winning team that feels valued and appreciated.
When you use Crosschq technology, you enjoy immediate access to critical data that can streamline your recruiting and hiring processes, while ensuring that you remain competitive in an ever-changing job market.
Our proprietary Crosschq 360 talent acquisition software, Recruit candidate referral network, and data-driven Analytics will allow your HR, hiring, and leadership teams to accurately plan winning compensation strategies, so you can reduce turnover and retain the best talent in your industry.
To find out how Crosschq's data analytics and AI technology can help you build a modern compensation plan, contact us today to schedule a demo.
From pre-hire to post-hire, Crosschq helps you source, screen, onboard, and measure the best talent. Fast.
Request a free demo from a team expert to see how we can help your company.
Crosschq, Head of DataView All Articles
Topics from this blog: Talent Acquisition Compensation Plan ProductBack
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