Thu 22 May 2008
How to Create a Good Compensation Package for Your Employees
In these competitive times, it is very important to hold on to your good employees.
In addition to making them feel comfortable at the workplace, it is also essential to provide a satisfactory compensation package so that they feel financially secure.
Here are some ways to achieve this.
Do Some Research
Find out what your employees might want in addition to their salary. Then figure out which factors you can incorporate into the compensation package and those that you cannot.
Doing your homework before offering a compensation package to your employees will save you time in modifying the package later on.
Know Industry Rates
Before you offer a compensation package to your employees, be sure to check out the industry rates for that position. That way, you will not find yourself on the wrong foot when you make an offer.
Your employees may also be checking out industry rates, and they will be happy if you offer them something more.
Offer Your Employees Incentives
If you can’t offer cash incentives to your employees, then try something else.
For example, you can offer them gift certificates to their favorite restaurant, a certain number of paid vacation days (above and beyond what they would normally receive), or even a retirement package if they perform according to your expectations.
Go the Extra Mile
In addition medical and leave benefits, you can also add other compensation, such as higher overtime pay or an attractive pension package if your employee sticks with you for certain number of years.
You can add any compensation according to your industry; but the end result should be that your employee is motivated to work hard and stay with your small business for years to come.
It is not very difficult to hold on to good employees - if you offer them the right compensation package, matched to their performance. This will ensure that both of you get what you had hoped for.