Pay and Perks: Your Winning Talent Strategy

43% of businesses outlined ‘Can’t compete on pay and benefits’ as the main reason they have lost out on hiring new talent in the last 6 months.

These insights from our recent global workplace study, involving over 3,400 professionals and 600+ employers, underscore the importance of crafting an irresistible offering to attract skilled talent to your business.

It’s certainly not ‘new news,’ especially these days when hiring can be a hurdle. If you are going to hire and retain the best talent in your industry, you have to offer pay and benefits that meet or exceed their expectations.

Even in challenging global markets, employees are quick to jump ship if they see better opportunities elsewhere. And the truth is, replacing them can be a costly endeavour, often exceeding what you'd spend to retain them.

The same is true when you're on the hunt for fresh talent, you'll notice that competition remains fierce, particularly for those hard-to-find skilled professionals. The only way to stay in the game is to offer competitive packages.

More importantly, pay and benefits aren't just line items on a budget; they are investments in your most valuable asset: your people.

The role of fair pay in talent attraction and retention

40% of professionals globally value ‘Higher salary’ the most when looking at moving roles.

Nowadays, job seekers have easy access to all the information they need to find out if a salary offer is fair or not. Through multiple sources, such as salary guides and online forums, they are well-equipped to approach salary-related questions armed with industry benchmarks - they truly know their worth.

A salary offer that is not at the right level is the #1 reason professionals walk away from a potential job opportunity - that's a big signal that the salary offered upfront matters a lot in getting and keeping great people on board.

• Periodically benchmark your salary packages against industry standards.
• Be prepared to adapt and refine your compensation packages to remain competitive in the market.
• Establish a clear plan for determining salary ranges for various job roles.
• Provide guidance to your teams on the criteria for pay raises and bonuses.
• Engage with recruitment consultants to understand supply and demand dynamics affecting salary offers.
• Prepare to address staff inquiries regarding salary increases and formulate responses to pay raise requests.
• Keep a close watch on your competitors, gathering insights on their compensation practices revealed during interviews.

In the quest to hire and retain top talent, fair pay plays a pivotal role as a magnet for skilled professionals. Employees are ready to hop jobs if they feel like their salary doesn't match up to market standards for similar roles.

As companies strive to hold onto their top performers amidst the shortage of skilled talent in many industries and locations, counteroffers have become increasingly common. Be ready to know how far you'll go to attract new employees or retain existing team members when negotiating salary terms.

When employees feel their contributions are recognised and rewarded fairly, they're more likely to remain loyal and contribute their best to the company's success.

Support career growth and provide upskilling opportunities

Most professionals have a crystal clear vision of how they want to shape their careers. They want opportunities to grow and progress professionally.

Imagine a company that invests in ongoing training, encourages mentorship, and makes it crystal clear how each employee can climb that career ladder. Employees thrive in such an environment, feeling valued and motivated to learn and grow.

But it can be beneficial for the organisation as well as each employee. Google saw the benefits when they faced the challenge of keeping their highly sought-after software engineers, and took a holistic approach to retention through fostering a culture of continuous learning and development.

They initiated programs like "20% time” which allowed engineers to pursue personal projects. This approach not only retained talent but also fueled remarkable innovations, including Gmail!

Companies that invest in their people's development with training, mentorship, and clear paths for advancement, not only attract top talent but also build a team that's in it for the long haul.

What truly matters to today's workforce?

The benefits that organisations offer are more than just perks; they are essential components of a competitive compensation package. Companies that recognise and prioritise these benefits are not only recruiting top talent but also creating an environment where employees feel valued, supported, and motivated to contribute their best.

Based on our research, we've delved into the data to uncover employees’ most valued benefits. Interestingly, we found that non-financial benefits are equally significant as financial benefits, and two of the top five benefits employees value are non-financial.

According to a Gallup/Workhuman survey, organisations that make employee appreciation a priority have workers who are 56% less likely to look for a new job.

While a competitive salary is crucial, it's worth noting that non-financial advantages, such as a flexible work environment, avenues for personal growth, and a supportive company culture, make employees more likely to stay with their current employer, appealing to top talent seeking a well-rounded job experience.

1. Bonus

Leading the list is bonuses. On top of salary, bonuses are a financial incentive that act as effective motivators and are a clear indicator of performance recognition. They encourage employees to go above and beyond in their roles, driving innovation and productivity.

2. Work from home

Being able to work from home has taken the second spot as the most valued employee benefit. This isn't just about convenience but also flexibility and work-life balance.

3. Health Insurance

Employee well-being has never been more critical, and comprehensive health insurance is now a must-have benefit. It provides peace of mind, knowing that medical expenses are supported by their employer.

4. Flexible working hours

Employees appreciate the freedom to adjust their start and finish times, allowing them to better manage personal commitments and maintain a healthy work-life balance.

5. Life insurance/assurance

Life insurance offers financial security for employees and their families. It's a benefit that provides security, knowing that loved ones will be taken care of in the event of unexpected circumstances.

Pay and benefits are investments for your organisation

In the quest to attract and retain the best and brightest, it's clear that a well-rounded approach is key. Competitive pay, valuable benefits, flexibility, and growth opportunities are the cornerstones of building a talented and loyal workforce. Our survey findings provide a snapshot of the current market trends, but these principles remain timeless.