Compensation Best Practices
Payscale.com surveyed 7,100 HR professionals and business leaders for the 2018 Compensation Best Practices Report. Read this report to understand how compensation and pay philosophy can affect hiring in 2019.
Executive Summary …Your Pay Brand Matters
The way you pay, including how much and why, matters to your potential employees and to your current employees. Perceptions around your organization’s commitment to or lack of commitment to fair pay practices are now top of mind. Mission-focused Millennials, and other demographic groups in the workforce from Baby Boomers to Gen Z are paying attention. No longer can organizations hide their heads in the sand about issues like gender pay equity because talent is watching and making value judgments on how organizations craft their pay philosophy and practices. If those don’t align with the culture or sit well with employees, they may take their skills elsewhere.
…Communicating Is How You Win (or Lose)
Communicating clearly about your pay practices has the potential to pay off significantly in better employee engagement and satisfaction. Most organizations still fail at this part of strategic compensation. The reason for building a smart, modern compensation program is not to benchmark job salaries correctly, although that is undoubtedly part of the program. Compensation, done well, is about your organization’s realization that you are playing a talent game and a perception game, and to win you must approach what you pay, how you pay and why you pay as key pillars of your talent strategy.
In 2019, retaining your top talent is just as important as attracting new talent. You need to show your existing and future employees that you care about them, their lives and their quality of life. Acknowledge the value they bring to your organization’s success. This will set you apart as a beacon for the best, or, if you don’t do these things, will put you in the penalty box where the market either believes you don’t pay well, or fairly. Don’t make them guess because you haven’t made it clear by your actions. That’s the challenge and the opportunity for how you pay in 2019.
Source: PayScale – Tim Low, Senior Vice President
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