Setting your organization apart from the rest in today’s competitive hiring landscape can be challenging. That’s where designing a competitive employee compensation package can help! If you are interested in recruiting top talent to your organization, keep reading for a few helpful tips about designing an enticing employee compensation package below!
What is an employee compensation package?
Before we begin, let’s define what a typical employee compensation package includes. When hiring new employees, your organization should begin by establishing the kinds of monetary and non-monetary compensation that will be included with the role. The employee compensation package you design should be highly enticing to potential applicants, as you want to draw in the best possible applicants for the role. The benefits included should be enticing in the beginning and throughout the employee’s time with your organization to help increase retention rates.
What does a competitive employee compensation package look like?
An employee compensation package is going to look different depending on the industry you’re in, but here are several examples of competitive benefits to consider:
- Base Salary: You should do your research on what the current base salary rate is in your area for the role you want to fill. Keep in mind that the base salary should also account for each applicant’s experience level.
- Bonuses: How much money will your employee receive if they meet or exceed the goals of their position? This should be based on factors like individual employee performance or company-wide performance. You will also want to decide if you are willing to offer new applicants a sign-on bonus or a retention bonus for time spent at your organization.
- Stock Options: If you are a publicly traded company, you will want to consider offering your employees stock options. It’s important to decide when an employee will be allowed stock options, based on the amount of time they commit and work with your organization.
- Time Off: This is a big factor, especially in our post-pandemic world. Employees are prioritizing flexible work options now more than ever. Decide what kind of vacation, paid time off, sick days, holidays, and more that you are willing to offer new employees. This should include a paid-time-off structure that factors in how long an employee stays with your company.
- Retirement Savings: Don’t forget to consider what kind of retirement savings plans you are willing to offer your employees. These can include traditional retirement savings accounts like a company 401k. Or, you can get more creative by offering profit-sharing agreements to your employees. You will also need to establish if your organization will match any employee contributions and up to what amount.
- Continuing Education: Personal and career fulfillment is another important consideration that applicants now prioritize. Is your organization willing to offer continuing education opportunities to your new hires, so that they can acquire new skills in their role and overall career?
Work with Prescott HR
Does your organization need help with designing a competitive compensation package? We are here to help! Prescott HR offers a wide range of services that can help your organization stay current in the ever-changing world of recruitment and employee retention. Our unintimated HR practices allow us to be focused and effective, providing your business with precisely what you need. Give us a call today at 443-351-8818 or contact us online.