Incentive compensation plans are an integral part of keeping core employees around, and retaining high-performing employees is essential to maintaining a business that thrives in any market. When staff members are in it for the long haul, companies can save time and money that would otherwise have been spent on turnover costs. The following are ways to keep the best and brightest around in any work environment. Offer a competitive plan People are always looking to make the most money they can in their chosen profession, and that could mean leaving one business for another that offers higher compensation. The Wall Street Journal reports that a competitive plan offers more than just money – it shows staff members that their livelihood is important to their employers. A good compensation plan will offer benefits such as health insurance, life insurance and retirement plans, in addition to competitive base pay. Compensation plans are the first step to maintaining a driven workforce filled with talented individuals. Incentive compensation is also a great way to reward employees, which will keep them around longer. Bonuses and commissions are always appreciated by team members, and motivate them to do their best work. The best compensation plans are based on factors individual to each company, and the process can be taxing. Utilizing incentive compensation software is a popular way to make the process easier and more beneficial to everyone involved. Promote from within One of the most effective ways to increase employee retention is by promoting from within. Providing workers with a clear advancement path will make them more likely to stick around. When employees see that they are appreciated and will have an opportunity to be promoted, they may feel encouraged to put out their best work in hopes for a promotion in the future.
