Any business, including a company that provides digital transcription services need to have the right candidates for the job. To retain the employees, attractive compensation must also be provided. Good compensation is a factor that encourages employees to remain with their employers. Compensating employees well shows how an employer values his employees. Once the employees feel that they are valued, it motivates them to work more productively.
An example is quoted by the vice president of people operations at Smart sheet, Kara Hamilton. Her SaaS-platform company faced some problems in hiring and retaining employees. After setting up her internal recruiting team, she realized that their base and bonus paying structure was not right. The HR leadership did some market research and her team developed a new and more workable compensation structure. In the initial stage, it was difficult for the company to pay the renewed pay structure but it proved to be competitive and started yielding results with time. Understanding and determining the value of your employees is important and it should not be ignored. So here are four best practices employers can follow to attract and retain their employees with a good compensation offer.
- Do not just look at performance, look beyond that: Salaries are set for an employee based on his/her performance but employers should look for more than their job performance. Many companies are now ditching annual reviews and using more continuous and performance-oriented feedback. This provides the employer real time visibility of the employee’s performance. Lara Albert, director of solution management at SAP Success Factors, says that it is important to know how companies balance performance with other factors when there is a compensation change. Employers take into account various factors while determining current job performance like goal achievement, difficulty of goals achieved, presence of positive and negative job relevant behaviors, manager-evaluation of performance, peer feedback, achievement of development goals and job tenure. They also consider future job potential factors such as employee-career interests, acquisition of specific job experiences and development of new skills. Finally the company considers non-performance data, including current pay levels compared to the market, previous pay increases and perceived retention risk.
- Provide other forms of benefits: Monetary benefits may not be the only benefits that employees need. According to Amit Yoran, CEO of Tenable, a cyber risk-management company in Columbia, in the modern world where technology and best practices are rising at a faster rate, investing in continuing education of your employees is very important. Provide them professional development programs, seminars, conferences and certifications that help them learn more skills and go forward in their career. So provide continuing education programs and other benefits and opportunities to your employees so that they know that they are valued.
- Know what your competitors are paying their employees: Although a company’s pay is competitive, it will have difficulty in attracting and retaining employees if the competitors are ready to pay more. So monitoring your competitors about how they pay their staffs will guide you in determining the pay structure for your employees. If you are planning to hire workers from companies you admire, you will have to office them a higher pay scale. At the same time, you will also have to give your current employees a raise.
- Help your employees set their goals: Employees stay in their job if they get enough recognition for their work. Platforms like Flex Awards help employers personalize digital recognitions and rewards in an instant, so employees feel noticed right away. The problem is knowing which employees are most deserving of rewards and raises. This is when setting goals becomes more important. Setting goals helps in building the employer- employee relationship. Fred Stevens-Smith, CEO of Rainforest, a QA testing service for web and mobile applications in San Francisco, says that his company gives importance to the value of setting goals. Having a clear set of goals and responsibilities is important and then it is a matter of coaching your employees to work towards achieving those goals.
To summarize, we know that it is not always easy to find a solution to the challenge of motivating employees and encouraging them to stay with the company. So to retain employees, businesses must consider the different ways they can reward employees. The best employee retention strategies include the following.
- Good working conditions and relationships
- Professional recognition
- Financial compensation
Right from the time of hiring through appointment of the right employees and retaining them, employers must have an effective strategy in place.