Overall compensation: what will your strategy be?

Pay is probably not your number one topic of conversation when you are at a family gathering or when you are with friends at a dinner. However, in business, this is a very popular subject on which it is essential to focus. First of all, when we think of compensation, we automatically think of salary. Yes that’s right. But it is also everything that encompasses the various social benefits of your company. These benefits are valuable and help distinguish you as an employer of choice.

Historically, the compensation package took the form of a group insurance program, a generous retirement plan, competitive salary scales and a vacation policy. This type of plan made it possible to retain employees for 35 years of service.

But the evolution of the labor market as well as the arrival of new generations, notably the generation of millennials, have contributed to the broadening of the vision of what are social advantages. Flexible schedules, access to teleworking and generous vacations have gained popularity while retirement plans have declined.

With all these changes, many companies have had to review their total compensation program to meet the new needs of their employees. However, the main challenge for companies is to satisfy the needs of all, both with generous retirement plans and attractive vacation policies. With the budgetary reality, how to go about it?

To address this issue, several companies have established a compensation program with “flexible” benefits or “à la carte”. This type of program allows employees to choose from various benefits offered, based on their needs and your budget. It has also been shown that a flexible benefits program constitutes an important lever for mobilizing and retaining staff. Although this concept seems new, it was created in the 1980s by innovative employers. This type of plan has grown in popularity from 4% in 1993 to 56% in 2014. Is this an avenue for your business?

Remember that no matter what compensation program your company uses, salary is not the only factor to consider. Indeed, salary is not the number one priority when looking for a job, especially for the new generation of millennials. We must therefore use creativity in order to implement a program that will appeal to future generations.

Be aware of the impact of your remuneration offer and use your overall offer as a tool to qualify as an employer of choice.

SOURCE:

Flexible employer insurance plan: history and principles. CRHA http://www.portailrh.org/votre_emploi/fiche_lapresse.aspx?p=568917