Compensation & benefits can be given only to employees who show progress and bring in substantial ROI back to the company’s account. Since, your company has a mix of people, the compensation parity needs to be decided upon so that everybody gets their fixed and rational share.
Keeping in mind that the greatest potential comes from investment in quality people, you need to build a compensation management process that you can go back to every now and then. Once you write down a decent document stating which level employee should get how much compensation, you can show that to your new and old employees and get their acknowledgement too, so as to build their trust in the organization.
Another factor comes into place when you think of your company’s growth i.e., scaling! Scaling of your organization is extremely affected by your compensation management processes. How you ask?
I will break it down for you!
For once, take a step back and think, if you keep hiring average talent, how would your organization’s decision-making skills grow? Every time your company would need you for every small decision taking. Hence, that will keep you busy with petty things, let alone the idea of scaling your organization.
Hence, the first step is to hire multi-talented and multi-faceted people that will handle multiple things at once. And believe me, such people are plenty in the market. You just need to grab them! You might need to properly train and compensate them for retention.
But hey! You will have a bunch of assets for your organization once you’re done hiring and training your new human resource.
Better your human resource, better your compensation plans for them and in turn, the best scaling options for your organization. These new hires will be able to take decisions on their own and will increase your scaling speed to a good enough level.
You will need to take care of their compensation and benefits from time to time so that they stick with you for long periods of time.
Now that you have the right team on your side, you can follow two ways of deciding their pay scales.
One is Salary Benchmarking, which refers to researching on the market price for all the job vacancies you have and offering the most decent to your employee. The trick is to not offer less or more but just the right amount that he/she cannot refuse. The other way is Pay grading, which refers to categorizing your employees into groups according to their work descriptions. This might be more beneficial for you and your employees as they will get the exact salary that they deserve according to their work analysis.
Next, after the salary review, you can move on to creating a compensation and benefits plan for which you can use the already created salary analysis. This analysis will make your compensation management process very clear and you will very well know what to offer to which employee on it completion.
A lot of companies adhere to online performance management systems to build their compensation management processes. You can follow the same!
Just fill all the details of your employees and the software will give you a detailed analysis of the work done by your employees and the amount of revenue generated by each. The software will even create the compensation plan for you and you will just need to sit and allot the required compensation and benefits to your staff.
Such softwares will also help you in your budget allocation so that you know how much you have spent on employee compensation. The incentives should be good enough but not exceeding your budget.
Another advantage with these softwares is that a certain sense of compensation parity will be developed which will make your employees get the incentives they deserve according to their job evaluations.
As a result, people working in your company will good mouth you in town leading to more people wanting to work in your company. A good combination of employee compensation and salary reviews will grant you quality people who will ultimately scale your organization extensively.
It won’t take much time for you to be on the ‘Great places to work’ list.
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