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Do Today’s Compensation Strategies Fit Tomorrow’s Generations?

A compensation strategy is more than just a way to let your HR function know how much to pay your team. When used correctly, these plans can help companies to determine how to attract and retain top-tier talent.  After all, while many of the most compelling candidates in your sector will be looking for more than “just a salary” in their job offers, that does not mean that remuneration is not essential. Your approach to compensation supports your employer brand by showing you understand your industry. What’s more, it shows your technology talent that you respect and value their skills.  

In a world of transformation and growth, the pay practices of days gone by are changing. Today’s businesses know that they need to find new ways to engage their staff, and that means investing in better training strategies, stronger employer brands, and better rewards.  

As research from organisations like “World at Work” continue to uncover the fluctuating nature of remuneration, it is time to ask yourself whether your current compensation strategy fits with the recruitment world of tomorrow?

 

Do You Know your Employee’s Definition of “Fair” Compensation? 

 

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According to the Human Capital Management Research team for SAP SuccessFactors, a critical component of a good compensation strategy, is making sure your employees see your practices as “motivational” and “fair”.  

Research suggests that your staff may care more about “how” their salary is determined, than the numbers you offer. After all, most of your job candidates will know that compensation can vary from one business to another. The demands of a role combined with the budget of a specific organisation can lead to fluctuations in pay. The key to successful recruitment is showing people that you are dedicated to giving them the money and benefits they feel they deserve.  

Company-wide surveys to evaluate how your people feel about their income can help to reveal valuable insights into satisfaction. Primarily, your employees expect you to do more than give them a number and walk away. With the guidance of a recruitment agency, you can even launch in-depth conversations with your staff about the pay you can provide, and the salaries offered by other organisations.  

 

Are You Transparent About Pay Opportunities?  

 

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workplace is a diverse thing. The responsibilities each of your staff members have may impact the salary you offer. This is particularly true in the growing field of technology. An individual with proficiency in DevOps and Salesforce tools might demand a higher rate of pay than someone who deals with basic computer systems.  

While most employees expect that different skills will demand different rates of pay, they also want their employers to offer transparency to what each member of the team is given in remuneration, and why.  

A survey from the Institute of Women’s Policy Research found that 51% of women feel unable to discuss their salary with their colleagues. Implementing a strategy of secrecy within your organisation might seem like an excellent way to prevent issues with compensation dissatisfaction among employees. However, the truth is that hiding salaries are more likely to lead to distrust in the workforce.  

With review sites, forums, and social media now giving employees plenty of ways to communicate, staff can find information about the salaries of former team members, existing staff, and people in similar roles from other companies. This means that if you do not give your team the information they need about remuneration, they will find it elsewhere, and wonder what you are hiding.
 

Can You Distribute Benefits Equitably?

 

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Circling back to the concept of “fairness” in your compensation strategy, studies suggest that managers now have more autonomy than ever when making remuneration decisions. They not only have an impact on how much a business chooses to pay any employee, but they can also drive decisions about spot bonuses and rewards too.  

healthy working environment can use benefits to drive motivation and engagement in staff. However, this only works if rewards are distributed equitably. Even well-intentioned managers have the potential to make biased decisions based on the people they like most in their teams. Unfortunately, when bias creeps into reward decisions, even small benefits can negatively impact the perceptions of staff who have been overlooked.  

One good way to keep distribution equitable is to create a plan within your compensation strategy, that dictates how spot bonuses and rewards will be given. If each employee knows which behaviours lead to bonuses, and they see a range of staff members recognised for their hard work, your company is more likely to thrive.  

 

About Resource On Demand 

Resource on Demand is Europe’s first specialist Salesforce Recruitment Company, now also focusing on growth Cloud markets.  

We assist innovative and disruptive organisations to grow their technology teams. Supporting companies to fill Cloud roles that span across Digital Marketing, Marketing Automation, Human Capital Management and the growing Salesforce.com suite of skills. 

The team at Resource on Demand have access to an extensive database of key talent, registering over 8000 Cloud professionals each year.  

To find out how we can support you call us on +44 20 8123 7769 

2022-08-17T14:50:15+00:00 Recruitment, salesforce.com|