What message are you sending to your employees through compensation? This is a question worth thinking about. You know that you must attract, retain and motivate your troops, and total compensation is one of the major incentives. Don’t worry, I won’t talk about salary increases here, but about how to develop a compensation strategy aligned with your organizational culture to communicate the right message.
« Your well-being matters to us. »
Remuneration does not only consist of monetary benefits. It also presents a range of social advantages and relational rewards such as the work climate, recognition, security, challenges and even learning opportunities. To attract the best candidates, you must first trust them, and then maintain that trust. Relational rewards will demonstrate your good intentions while being a competitive advantage in the job market.
« You are treated fairly. »
Your remuneration must also be fair to everyone. Otherwise, your message becomes: “There is favoritism in our company“. How to avoid this? Create salary scales based on internal and external equity. Communicate to your employees the rigorous approach you have undertaken. A rigorous approach ensures procedural justice. To achieve this, you will need to evaluate the different job categories and make a comparison between them according to their scores on very specific criteria. Then, do market research to find out the median salaries in your sector, and adopt a very precise strategic positioning in relation to the market.
« We are grateful and aware of your contribution. »
For a mobilized team, we must reward! Your strategy will depend on what type of behavior you want to encourage. If you want to focus on loyalty, make a salary policy based on years of service. If you want to increase performance and engagement, offer an immediate bonus following the achievement of your results, or following your performance evaluation exercise. If you want to strengthen the feeling of belonging, organize social activities at specific times linked to the success of your business.
Need help spreading the right message? Iceberg Management consultants are there for you!
Author
Organizational development consultant
Specialized in human resources
