Five Things To Keep In Mind As You Come Up With A Compensation Strategy For Your New Business

When your business is growing to the point where you'll want to hire employees, it's time to start thinking about compensation strategies that will encourage highly qualified people to work for you. Using the following pointers, you can attract employees who are both good at their jobs and loyal to your company.

Investigate Competitor Salaries

A good place to start coming up with your own compensation strategy is to investigate the current salaries in place at other companies. You can easily find this information online at job sites and in online forums. While you don't have to feel pressure to adhere to those norms, knowing what you're up against when wooing highly-qualified work candidates can help you to be as competitive as you can.

Find Out About Health And Dental Insurance

The dollars you pay an employee are just one part of the overall compensation strategy. If you are busying finding the best group health insurance plans in the state, being able to compile a compensation package that includes medical and dental coverage can go a long way. Every family has their own health challenges, but you put yourself at the head of the pack if you're willing to offer good health and dental insurance plans for your employees and their families.

Provide Non-Financial Incentives

When you've reached the limit of the money you've set aside to pay employees, you may discover that your compensation plan is not as lucrative as others in the industry. That's when it's time for you to start coming up with non-financial incentives that will attract good employees even if you're not able to pay them as much as other companies.

For instance, you may allow employees to work from home one day a week. You may permit them to work a flexible number of hours during the week, or provide lunch at no cost to them. Such measures will make a job more enjoyable for an employee, and, even if they aren't making as much money as they could be, knowing that you provide a supportive environment with great perks may sway them and convince them to work for you instead of competitors. You may also want to provide information about how you respect feedback and reward employees for their contributions each month; if employees feel that their bosses care about them, they feel more empowered in their positions and happier to work there. Thus, they can be loyal to your company too, unlikely to leave for places that have a worse corporate culture.

With the advice in this article, you should be able to craft a compensation strategy that works for you and the people you want to hire. Consider enlisting an employee strategy consultant like those at Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc. to help you during this time so that you can create an employee structure that functions properly for everyone involved.