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4 Ways to Establish A Competitive Compensation

4 Ways to Establish A Competitive Compensation

It’s no secret that compensation is one of the most important factors to consider when looking for a new job. Employers must also ensure that they’re remaining competitive within the market to attract great talent and retain their current employees. Here are four ways employers can establish a competitive compensation in today’s market. 

Understand the market

Whether you’re a candidate searching for a new opportunity or are looking to add staff to your organization, you’ll want to make sure that you understand what the market is paying in your industry. There are websites that offer insights into salaries for certain positions. The Bureau of Labor Statistics or Glassdoor are great tools to use. These sites can help your company determine if your compensation is competitive or missing the mark.

Offering other benefits

Employers can also offer a robust benefits package to attract and retain talent. Additional bonuses, paying for healthcare premiums, 401k match, and remote work flexibility are great ways to stay competitive. Benefits remain an essential factor when candidates are considering a new opportunity. So, if you cannot come up on the salary range, there are other benefits you can offer to remain competitive.

Benchmark salaries

According to Salary.com, benchmarking “is a process by which compensation professionals match internal jobs and their descriptions to similar jobs and descriptions in a salary survey or other source of market pay data, in order to identify the market pay rate for each position.” Benchmarking once a year will ensure that you’re remaining competitive to not only retain your current employees but attracting new talent as well. Your compensation packages may be competitive this year, but regular benchmarking is a safe way to remain competitive.

Understanding the value of the position

My clients are consistently looking for mortgage operations folks to join their team in today’s market because the mortgage market is hot. Companies have had to offer additional incentives, higher salaries, and other benefits to attract these candidates. Since the need is so high, employers need to stand out when looking for a candidate in high demand. Properly valuing workers in high demand is also crucial for your current employees, or they will seek out other opportunities.

Recruiters can help you be competitive

As I’ve mentioned, there are several ways companies can remain competitive in the market when it comes to compensation. A great place to start would be to speak to a recruiter in your industry. We speak to candidates all day long about their compensation requirements, and we’re consistently doing market research on our industries. At JSG, we take the time to understand market trends and the needs of our clients. If you need help to establish a competitive compensation package for your candidates, reach out to us today!

How Flexible Is Your Compensation Package?

I was at the gym the other day when I learned the importance of being flexible. Unfortunately, I’m about as flexible as an iron bar. The trainer told us to get into a spider position. If you don’t know what that is, let me paint you a picture. He had us lay on our stomachs, reach back and grab our ankles, and arch our entire body.

Flexible Compensation Package

As I was haphazardly flopping side to side, trying desperately to reach each ankle, I quickly learned that the “spider” just wasn’t in my wheel house. I know what you’re thinking, and yes, I was the only one that couldn’t do the spider. I wish I had it on video because my trainer was bent over with laughter, saying I would be a huge hit on YouTube. The rest of the group was putting their heads down so I wouldn’t see the enjoyment painted on their faces from watching me fail miserably. I looked more like a fish out of water than a spider.

fish-flopping

Just as I am woefully inflexible in the gym, I see many of my clients being inflexible when it comes to hiring. In the candidate-driven market we are currently in, this inflexibility just won’t fly! For example, I have a client that will not start anyone with more than two weeks of vacation, no matter their level of experience. This inflexible compensation package is causing them to lose out on A-level candidates because they have 15 years of experience and have earned 4 weeks of vacation. When you look at the long-term impact that this candidate will have on your organization, an additional 2 weeks of vacation is not something worth holding on to simply because “this is how we’ve always done it.” In the end, the inflexibility of the company could end up making them look like a fish out of water, desperately flailing around trying to be a spider without putting in the work it takes to get there.

The final question is: is your company flexible and ready to do what it takes to hire A-level candidates? If not, you will end up like me at the gym. The only person in the room not flexible enough to do the spider, flopping around while everyone else gracefully adapts and grabs their ankles just in time to nab that top talent.