Employee Compensation Packages
Employee compensation packages have a come a long way. In the not so distant past, people used to work for companies without expecting any other compensation for their work other than the salary they got. Now if thats what an employer is offering a potential employee, he or she is going to take their skills somewhere else. With perks like day care centers, swimming pools, kennels, cappuccino machines, free lunches and dinners, massages, gyms, etc available to employees in the corporate world, they are going to look for where they are the most comfortable. But there are some other keys to attaining and retaining an employee.
- The salary should be based on the employees skill and performance level. If the employee excels in their department and projects more than you expected, then their salary should go up. These kinds of rewards make the employee feel good about themselves and working with you.
- Bonuses should also act as rewards for work well done. They should be based on the employees performance in a particular department. This shows the other employees financial benefits of hard work.
- If you are a new company and want to lure away a big time CEO from another competitor but cant offer him the same salary then give him stock options. This incentive can be a great draw for potential employees and those planning to leave the company for somewhere else.
- Always give some kind of health benefit to your workers. These benefits become more important as an employee grows older. You dont want to lose good workers with experience just because you want to save some money. If you cant offer them 100% coverage, at least offer them something. This is one key that many people just wont compromise, they need health insurance and you need to show them that you care about their health.
- Long term and short-term disability insurance is a great incentive for many people.
- 401(k) plans are becoming more and more attractive to people with all the investment opportunities out there. Make this part of your compensation package.
- Give your employees paid vacations, sick days, maternity leave, and flexible hours. You may not be able to offer all the benefits listed above like 100% health coverage, but a package full of vacation days might help your chances with that employee or potential employee.
Remember the key here is the happiness of your employee. An unhappy employee benefits no one. You need your workers to feel enthusiastic and worry-free so they can concentrate on helping the company become a more efficient outfit.