In order to hire the best in your industry, develop a compensation plan that rewards key employees. Learn how here.
As a company owner, you may have what many potential employees would characterize as the “dream job” that includes ideal working conditions and a competitive salary base. But staying competitive in the marketplace for exceptional employees may mean that you will need to offer especially skilled people something above and beyond the basics. In other words, creative employers should offer talented people more than enough incentives to keep them loyal to the company and willing to stay for the long haul. It is essentially a smart business strategy.
Employers are of course obligated to pay their employees for the work they perform. But when talented key workers are offered a job, they are frequently also offered a package of executive benefits—everything from special life insurance policies, long term disability income insurance, and retirement plans—that can increase the chance that a sought-after individual will take a particular job and/or that a current employee will stay with the company. But what if the employer has not kept up with similar companies and no longer offers a competitive executive compensation package? The employer may be at risk of losing the chance to hire the best employees and may find his or her current employees feel under rewarded. This might result in low morale and reduced productivity.
Employers need to routinely examine their executive compensation plans. The needs of their employees can change over time, and the benefits themselves can cost the employer and/or the employee more or less over time. A company needs to find the right package of executive benefits that both fits its budget and appeals to its employees.
In the end, planning a sound executive compensation package may require having a strategic meeting with employees and benefits advisors. The availability of additional compensation can also be an attractive incentive for less-skilled employees who have yet to grow into a specific position of value to the company.