You know that to stay competitive and attract top talent in the IT industry, you need to offer a viable salary and benefits package. At the same time, salaries have been known to get out of hand when there are too few people with the hottest skills. How can you keep your compensation plan on the right track?
True, money isn’t everything, but employees won’t work for you very long if they feel they’re not being paid fairly, or if they’re making a decent salary but without the perks their peers are enjoying at other companies.
Your organization needs a clear strategy for its total compensation package, which should include these important elements:
• Document each job. Analyze every position thoroughly, and compose job descriptions that spell out duties and responsibilities in detail. This way, both you and your employees will know exactly what people are getting paid for.
• Set out clear compensation procedures. Document guidelines for promotions, raises, bonuses, and any other compensation issue you’re likely to confront. This way, everyone knows what to expect.
• Consider standardization. Standardizing compensation procedures doesn’t mean paying everyone exactly the same. Consider factors like local employment laws and the hiring market in different locations when you set your payment policies.
• Be transparent. Explain how raises, bonuses, and other compensation issues work. Lay out the factors influencing compensation in your workplace in simple language so no one feels cheated or confused by differences in pay rates.
• Create true performance evaluations. If raises and bonuses are tied to employee reviews, be sure your managers know how to design, rate and discuss goals, results, and accountability effectively. This way, employees will know if they’ve earned a raise.
• Stick to your budget. Spell out the budgetary factors affecting compensation matters. A clear budget for salary and benefits expenses will help you set priorities and track salary spending more closely.
Does this sound complicated? Working with an experienced recruiting firm like Synerfac can make it easy! With our knowledge and experience, we can help you determine competitive salary in your market for the types of positions we’re trying to fill. Contact us any time you have a question about compensation!