Keeping a balance between Talent Retention and Salary
Recruitment and talent retention are both fundamental aspects that contribute to growth for companies. Most processes involving recruitment can be costly but termination costs are even higher. With this in mind, companies should determine their salaries based on current market values and align expectations with candidates from the beginning, such as career path, goals, metrics and so on.
A recent research showed that finding talents that are able to turn into profit is getting increasingly more difficult. Leaders, Managers and HR teams have to pay attention to what benefits they are offering in order to attract and retain good talent. To keep up with the market, companies with more conservative salaries have to update their offers to more contemporary scenarios.
The biggest challenge is finding the balance between creating a competitive remuneration package and, at the same time, making sure that it aligns with the company’s growth metrics.
How to structure a career plan and candidate salaries?
The first step in defining salaries compatible with the market is to understand the industry’s current situation. Salary surveys are a fundamental tool used to retain talent. Based on its data, you can understand all the parameters and criteria that surround the definition of salary and benefit packages.
Beyond fixed salary, companies also adopt strategic remuneration. This means offering Bonuses and/or Commissions, Sales/Goals bonuses and equity participation. This strategy generates more connection and cooperation between the employer and employee. When collaborators reach a certain goal, they receive compensation based on their efforts, keeping them motivated and accomplished with their work. To make sure this strategy is attractive to the employee but doesn’t generate loss for the company, it has to be restructured and determined on a yearly basis.
Remuneration, when well structured, is a key instrument to managing and keeping talent. The marketplace is becoming more competitive each day, and it’s the company’s responsibility to keep track of what’s being offered by the competition. Keeping yourself updated about salary and benefits along with remuneration politics, is more essential than ever
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