The People Place Weighs in on Compensation

Kyla England from The People Place

Many small business owners want to operate innovatively when it comes to compensation, but don’t know where to begin. Below, The People Place shares their tips for articulating and executing a compensation philosophy that meets the demands of today’s workforce.

Complete a Benchmarking Exercise

Complete a remuneration benchmarking exercise every couple of years so that you know where you sit, comparable to the market. Most recruitment agencies produce an annual salary survey – reviewing these is a good (free!) place to start.

Articulate and Execute your Compensation Philosophy

Articulate your organisation’s compensation philosophy and have a plan for executing this. If the benchmarking exercise shows you currently sit at X% below market average, and you want to lift that, plan how you can do this, and within what timeframe. Include this the business strategy you share with your people.

Talk about Compensation

Train your leaders to discuss your organisation’s compensation strategy with their teams. Less than 20% of organisations feel confident in their managers’ ability to have robust conversations about pay, despite this being a core part of the employment relationship. If you are confident in your market position, and/or have a compelling plan to get where you want to be, share this with your staff.

Listen to the People

Ask your people about their intrinsic and extrinsic motivators and incorporate the feedback into your compensation strategy. Do you have a workforce that cares as much about work as they do family time? Consider days off in lieu of bonuses. Are you a highly values-driven organisation? Implement a rewards program that recognises behavior, not just performance. Do your people crave additional training? Think of the associated costs as a reward and an investment.

NZ’s smartest leaders care about compensation because they care about the retention, wellness, and performance of their people. They are making plans beyond mere inflation adjustments and are looking creatively at ways to engage and motivate their greatest asset, their staff.

If you’d like to experience the benefits of a well-articulated and executed compensation strategy in your organization, contact us today.