A hard day’s work is almost always worth the effort when employees can open a paycheck that they feel accurately reflects the quality and volume of their output.
A fair salary hints to employees that they are valued and the company appreciates their work, but what are other compensation strategies companies can utilize to maximize a return on investment for its workers?
Here are five compensation structures that work:
- Offer something beyond a check: Although money is usually a top motivator for employees to spur to action, it is beneficial for employers to show they see their worker’s worth in more than just dollar signs. Offering incentives such as discounts with partnering companies or neighborhood businesses such as gyms, or even on-site wellness programs, can perk up compensation packages to make them, and the employee, more physically and emotionally well-rounded.
- Up the ante: Although employees are generally scheduled to receive annual evaluations, they may be motivated to ramp up their work ethic throughout the year through performance-based commissions, such as merit increases, that can be tracked through incentive compensation management software (ICM). When employees know they can acquire higher pay through a boost in skills or production, they are more likely to work harder, according to PayScale.
- Employee recognition: One of the biggest factors behind employee satisfaction and company loyalty is the degree to which the worker feels she or he has been acknowledged for their work. Appreciation and recognition are two small concepts that have big internal impacts, according to Industry Week.”Nearly 80% of organizations unfortunately focus on ad-hoc or tenure-based recognition programs that fail to reinforce consistent messages or make a strategic impact,” said Stacia Sherman Garr, principal analyst at consulting group Bersin by Deloitte. (https://hummingbirddental.ca/) “Used correctly, employee recognition is an important talent management tool.”
- Encourage to think outside the box: Another strategy for compensation plans is to pay or offer a small token such as a gift card or temporary privilege when employees go above and beyond expected duties. Employees should be encouraged to find creative solutions and proactive strategies to carry out their work in the most time and money effective ways, and should be thusly rewarded, said Dan Sikora, human resources director for Seco Tools said to Industry Week. By offering small, instantaneous rewards to employees as part of an overall compensation plan, workers feel empowered to find innovative strategies that benefit them and their companies.
- Help employees reach goals: Employees are workers second, and people first. They each have personal and professional goals they hope to achieve and through a comprehensive employee development plan, companies can incorporate those aspirations into compensation structures that support employee achievements throughout their tenure.
