Organizations who want to attract and retain the best people need to make sure their values and purpose as a company are clear and communicated well both inside and outside of the organization. The values an organization holds dear should be embedded in the organization’s compensation philosophy and reflected in all pay decisions. This is what we call a value-based compensation plan.
For example, if you believe employees are your most valuable asset, pay them fairly. If you value open communication, prove it by communicating salary ranges and your pay rationale to your employees. When the core organizational values do not match with the compensation philosophy, it will seem disingenuous to both current employees and prospective employees.
Also, make sure you are using tools that allow you to utilize the most up to date compensation data and surveys so you can be confident that employees are paid competitively to market and equitably compared to their peers.
Additionally, you’ll want to actively manage your pay brand. In practice, this involves training your managers on how to talk about pay, so they can clearly explain your pay philosophy and rationale to employees.
Gone are the days in which organizations can provide a one-size-fits-all rewards package. As we discovered in our research, there isn’t one element that’s universally motivating to all employees. Additionally, as people move through their careers, and transition from one life stage to the next, their priorities and values change. The challenge for organizations is to decide what types of employees they need, understand what’s attributes these employees care about and then provide tailored total rewards packages and work experiences that suit their target employees’ needs.
“Attracting talent is a complex blend of many factors. It’s a craft cocktail of cash compensation, incentives like stock in various forms, perceived opportunities for growth and development, lifestyle options like work-from-home, commuter subsidies and benefits”, says Susan Hollingshead, Chief People Officer at Vendini.
“But there’s a critical social nexus as well. How important is the company’s mission and its social responsibility profile to the candidate? For some, that may outweigh or certainly weigh in against cash and benefits, even against lifestyle options or be seen as part of those lifestyle options. Blended with that is culture and engagement and how those show up in the company’s employment brand. Different elements will appeal in different ways to different candidate pools. To attract top talent today, compensation and talent professionals have to be fine tuned to the blend of these attributes that will best resonate with the kind of candidate they are seeking.”