When it comes to providing your staff with what they need to do a good job, several things come to mind. They need a safe work environment conducive to the tasks they’re faced with. They need adequate training to help ensure that work moves through your pipeline smoothly. They need mental and emotional standards of respect and goodwill while in the workplace. They also need to be paid, and not just paid, but paid well enough that they’re not constantly stressing about money and acting distracted at work. The following will explore several elements of compensation and benefits that you might want to include in your company.
Accept That The Perfect Compensation Package Is A Continually Moving Target
Before diving in, it’s important that you acknowledge that every position and business is different, and things are changing all the time. This means that part of providing good compensation and benefits involves paying attention to trends and data within your company (how long are your top performers sticking around, conduct anonymous employee satisfaction questionnaires, etc.) as well as in the world around you (looking at job postings, keeping your ears open for your competitor’s compensation/benefits mix, and keeping up to date on annual reports, national and international standards). Be ready to adjust if you find you’re no longer keeping up. If you’re not able to make adjustments to match the workforce’s new expectations, some serious digging will need to be done to figure out if there are business changes that need to be made elsewhere first or if an industry is in the midst of a bubble of sorts.
Consider The Whole Picture
When people talk about compensation, there’s the actual money staff are paid (their salary) and many other considerations. Benefits can include health coverage, both short-term and long-term disability insurance, retirement account matching, health or wellness stipends, and stipends for education. Other factors generally considered to be part of a compensation package include whether schedules are flexible, if there are office perks, paid time off (personal time off, vacation days, government holidays, sick leave, maternity leave, and paternity leave). Some companies also include performance management, talent development, and recognition or notoriety perks as part of their compensation package. Further, some businesses offer options for equity in the company and profit-sharing.
When you look at all the above-mentioned elements in a compensation package, you’ll begin to see how flexible these packages can be. Starting with your company’s values and goals, you’ll likely already have a few nonnegotiable. Once those are in place, you’re going to want to start considering the remaining features and where they fit in your plans.
Health Coverage
If you’re looking into benefits and compensation packages as an employer, pretty quickly, you’re going to come across the idea of including health plans. There are many to choose from, and this is definitely something that people highly value when making a choice to work somewhere or stay working somewhere. There are dental plans, medical plans, and hybrid plans that include both of these options. As with any insurance policy, when choosing a health plan, it’s always a good idea to shop around before making your choice. Compare prices from different providers for similar plans, and maybe even speak to other employers about whether their staff seems pleased with the coverage. Good health coverage plans are essential if you want a productive and satisfied workforce; if someone is worried about their child’s medical needs. Remember, healthy employees, are happy employees.
Be Cautious With Equity Offers
Yes, having a share in a company that they believe in can be an excellent piece of compensation for your staff, but when it comes to equity, the more you give out, the trickier things get. This isn’t likely going to be something you’ll be able to offer every employee after you grow beyond a certain size. Further, equity can result in other people having a fair bit of say in how the company is run. This is fine until it isn’t. You need to be conscious of the character and aims of the people you’re sharing equity with. It’s a good idea to speak about their vision for the company before the idea of equity is even brought up. You might end up having to steer a business with fifteen backseat drivers, all trying to convince you to go another way. There is such a thing as too many cooks in the kitchen.
The above information should help you strike a balance between compensation and benefits and keep your employees happy and healthy. When staff feels secure about their financial futures, their stress levels go down. When people’s stress levels go down, their productivity goes up.
