Compensation Trends Today

As the US and Global economies improve, there will be a demand for experienced personnel throughout most business sectors. I read a recent survey where over 70% of the workforce are looking for other job opportunities even though they are presently employed. That puts a lot of pressure on organizations to hold on to its great talent and also be ready to add additional personnel based on an improved economy. What must an organization do to retain its workforce and still make a profit as the economy heats up?

 

  • First, I believe that organizations who take care of their employees in a poor economy reflects what will happen to their employees in a good economy.
  • Second, I believe that organizations who have a strategic plan, a compensation philosophy and a competitive compensation and benefit structure are better able to communicate growth plans that challenge the organization and its employees to operate a optimal productivity levels in both poor and good economies.
  • Third, a solid annual performance plan for each employee coupled with a compensation and benefits communications plan provides the necessary information to employees to ensure that they are being treated fairly and know the future plans for themselves and how their contribution to the organization will be treated.

 

Given that you have the above three items in place, your organization should fair better in the number of turnovers we will experience over the next few years. If you need assistance with any of the three areas, we would be happy to help.