It is the responsibility of the employer to hire the right workers who can contribute to the growth of the company. As a professional business transcription service, we know that conducting an interview and picking the right candidate can be a daunting task. Most employers prefer to have transcripts of the interview prepared for later use. The role of an employer doesn’t end with hiring a candidate. After choosing the candidate, providing them good compensation along with other employee benefits is essential.
Traditional business models have to be restructured to meet new challenges. Whenever an organizational restructuring occurs, questions about compensation arise. If you have a skilled and talented team in your organization, it is important to retain them for the growth of the company. Recognition and competitive compensation are two key factors that impact employee retention. Competency based pay structure is pay structure that rewards employees on the basis of their performance and it serves as a motivational tool. With a great compensation package, employees are more likely to take greater initiatives and contribute more.
Usually companies follow two models of pay structure, salary model and commission model. A salary model is suitable for specialized employees and the commission model is ideal for sales agents. Salaried workers get a basic pay irrespective of their performance and may become complacent whereas commissioned workers have less reliable income streams.
A hybrid model provides salary as well as bonuses or a salary that transitions to commission that is ideal for the sales team to ensure better customer experiences, and motivate employees to work towards the growth of the company. Hybrid employees get paid irrespective of whether a sale is closed or not and it can limit growth opportunities when compared to team members who rely on commission.
Here are some important factors to note:
- Pay by commission whenever possible: The commission model of pay structure is the ideal way to encourage salespeople to sell because their growth parallels the company’s growth and it also provides financial flexibility. This method is followed in almost all industries especially real estate where brokers and agents are paid based on the sales they make. Set monthly or quarterly targets and reward those employees who meet their targets. This will motivate your employees as well as help your company grow.
- Provide growth opportunities: Make sure that your employees feel they have growth opportunities. Ideally, the commission splits must be structured to scale in keeping with team members increasing their transactions. The pay scale must be commensurate with their effort and risk. For example, Hub spot initially paid a base salary of $ 2 for every $ 1 of recurring monthly revenue. There was a condition though – after four months if a customer left, the employee would pay back the commission. Be careful about commission splits because it can be costly and affect the growth of your company.
- Adopt a simple compensation structure: You should have a simple and well-defined compensation structure but it doesn’t mean that your team members feel that their pay won’t cover their expenses. According to a study by the Wharton School of Business, paying more than the minimum can improve the productivity and longevity of an organization. Bonuses need not be monetary alone, it could be free vacation, home goods etc that are useful for them.
- Build a healthy work culture: Learning and transparency need to be fostered within the team. This will help your employees work together to grow and deliver excellent customer support. This method of internal marketing that reminds the employees how they contribute to individual success.
Choosing the right employee who can contribute to the success of the firm is essential. The job interview plays an important part in finding the best candidate for the job. Interview transcripts prepared with the support of general transcription companies provide a record of the interview and can be used later. Similarly, providing the right compensation approach for your team is essential to ensure employee satisfaction and the growth of the company. However, over payment and underpayment should be ideally avoided.