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Don’t take your eye off the prize!!
Some of us may never see a pay rise above inflation again thanks to the economy. A report issued by the CIPD says that we are experiencing the most severe fall in wages since the Second World War and the situation won’t improve until the UK economy has sustained growth.
Pay is just one element of what motivates employees, but get the work content interesting and engaging and retention will follow. Get the pay wrong and out of kilter with skills and people will look elsewhere. New, organically growing businesses have to offer good packages to attract talent in order to grow if it’s not there, it will become very difficult to attract and retain staff. Investing in graduates and skilled employees is expensive so the lower the turnover of staff, the better. One element of reward that SMEs can offer that is proven to be popular is profit share or stock through EMI (Enterprise Management Incentives) schemes.
Employers need to have an awareness of market pay and to build pay ranges that reflect skills and competence levels enabling people to grow and develop. This goes hand-in-hand with good job descriptions, which are needed to ensure clarity of accountabilities and sizing of jobs to price them against the market effectively.
It will be beneficial for employers to invest in training and sharper recruitment processes to increase productivity. Some simple adjustments like this can really improve cash flow so that staff can be rewarded properly.
Without regular reviews of pay and benefits, staff will feel undervalued. Most people hold great importance to their development, opportunities and career growth, so rewarding staff is very important to keeping staff. Bear in mind that people these days want benefits that are going to help them. So while a gym membership or a free lunch might be a nice bonus, in today’s economy, it might be more worthwhile offering something that employees will really get value from.
Some benefits to consider are:
· life assurance,
· pension schemes Compulsory under auto enrollment – check your staging date
· private health cover/dental insurance
· income protection
· critical illness cover
· Share ownership schemes
· extra holidays for long service,
· season ticket travel loans,
· gym membership,
· option to buy or sell holiday,
· flexible hours,
· employee discount schemes,
· free lunch or office snacks and product freebies.
People Puzzles uses market related data to determine what to pay and we will work closely with your management team to match jobs to the market. Data will be gathered, analysed and suggested adjustments made in line with the company’s pay strategy.
Detailed support can be provided to enable implementation of performance reviews in line with individual skill and competence, not just an across the board review, but something focused on those that will really make a difference.
So, if you are an SME with key skilled employees that you want to keep within your business it’s important to keep a close eye on the market. Don’t fall into the trap of developing people within your business and then not adjusting their reward package to reflect their new market value. If you need help in conducting this exercise Peoplepuzzles have the skills and knowledge to help you protect your most valued asset – your employees.