Compensation packages for employees
Find out the key elements that you could include in your compensation package when you take on a new employee in your business
Before making a job offer business owners need to be aware of the world of compensation and benefits; something which has changed dramatically over the last ten years as workers' habits and demands change. Keeping on top of these changes is important for attracting the best candidates, so here are our top tips when putting together a compensation package for employees:
Still the most important part of a compensation package for employees, your salary has to be very competitive. Our Salary and Market Insights are a great place to start, while our team of expert recruiters is always on hand to guide on market rates for given roles. To find your nearest REED office, view our contact us page here.
Before making an offer, consider the maximum you can or are prepared to pay, bearing in mind the candidate could try to negotiate for more. Offering a lower salary may save you money, but candidates susceptible to better offers elsewhere may feel perturbed.
When presenting your offer, ensure you communicate clearly all elements of the compensation and rewards package, and that the salary is just part of that.
Fee-earning roles will probably already have a set scheme in place, so ensure you're able to explain this clearly with worked examples and averages. Non-fee-earners would also be very happy with a bonus scheme, so if your organisation has a company-wide bonus scheme, or even departmental based awards or bonuses, these can all be very valuable.
Your organisation probably has a standard set of benefits, but an attractive benefits package is becoming increasingly important for candidates. Things like gym memberships, health insurance and corporate discount schemes are almost expected of larger companies, and are starting to filter down through to SMEs as well.
If you don't have these already, think about how else you can construct a more attractive benefits package including annual leave entitlements, flexible working, travel potential and TOIL (time off in lieu).
Freebies and other perks
While you may not advertise these directly, many jobs do have valuable perks which you can explain to candidates at the interview stage. Things like free tickets to various events, meals/drinks out, company away-days, or the use of the latest technological gadgets can all add up to making a big difference where a candidate has potentially more than one offer on the table. All these activities can also help towards motivating your employees in their roles. See our article here on other ways to motivate your staff.
Or explore the other articles in our employer advice section.