How employee compensation impacts company performance?
I understand you have hired the most optimistic, honest, faithful and selfless employees. They work for your company as if it is their own. Hence, you are growing and taking them with you. The catch is, they can do the same for somebody else if given a better opportunity, wouldn’t they?
Hence, employee compensation must top your list of To-do for some time.
According to studies conducted globally, 90% of top performing firms gave appraisals monthly and annually and 84% of the average companies – gave appraisals annually.
So, Average or on top, pay raise is a must. Apart from that, employee benefits too after certain milestones are crossed. Taking care of your company is their work. In return, taking care that their needs and wishes are met is your work. If you still think, only one salary is enough to retain your employees, keep reading on!
- Talent pool directly proportional to employee compensation strategies
The talent your company possesses is because your human resource brings that talent to your desk. Retention of that talent is a big factor behind your company’s growth. To retain your employee’s talent and energy and take it to another level, providing them with appraisals is necessary.
Adding to that, the total rewards they receive will be directly proportional to the total revenue made by your company at the end!
Still confused about what to offer? Take hints from the list below:
- Monthly appraisal after performance analysis
- Bonuses after every appreciable work done
- Acknowledgement of the highly and average skilled employees equally
- Monetary and gifting incentives on special occasions
- Small tokens of appreciation for increasing competition on a daily basis
- Even good food and drinks count
- Celebration of birthdays or days your employees over achieve
- Even a small thank you note or ‘you’re going great’ note on their desk means a lot to them
Make sure if you’re giving your employee something, it is seen by everyone, so your employee feels recognized. Ultimately, you gain their loyalty and they gain your respect. It’s a win-win!
- All they are looking for is job satisfaction
If not from your company, they’ll soon get it from some other firm. Even salary appraisals mean nothing in front of ‘Job satisfaction’.
If you’re not able to understand how to give them that, talk to them first! Understand their side of the story. Know their goals and limits. The skills they need to learn going ahead.
If you do that just once a month, you will be the boss who knows their employees as family. Now, what’s better than that! Why would an employee want to leave a family?
The total rewards your people will get in monetary terms and incentives too will push them towards their goals. They will perform well after receiving a satisfactory level of encouragement.
Job satisfaction comes from witnessing the fact that the person sitting in the cabin next to them is looking over them and planning to always work for their and the company’s betterment.
- Retention is the key to both your success locks
When an employee stays long enough, he / she knows a lot about your company and has given a lot for your company. Unless and until, your employee compensation plans increase retention in your company, how exactly would you scale?
How would you keep your employees from poaching? Or let alone, starting their own thing, as everybody is attracted towards now?
Let’s assume that one of your hardworking employees left or you had to let them go. Just the same happened to me! Story telling time everyone!
I was let go because the work was over. But, after a month or so, on a special occasion, I received a big box of festive stuff. The stuff has no significance for me. Just the gesture made me so respectful towards the firm. I thanked the company’s CEO and felt proud that the service I provided during my tenure was well appreciated even though it didn’t work out.
Now, even if your employee goes or you say good bye, you can maintain their loyalty towards you. They will never bad mouth you if they are made to think that they were a good employee. Nobody is as cruel.
Building your employee compensation folder next time, pay close attention to each of your employee’s performance and the amount of effort they are putting and offer appraisals and rewards accordingly.