Don’t Set and Forget Your Salaries
The current employment market is undoubtedly geared towards Employees. There are plenty of ample opportunities out there for Employees.
So, what does that mean for Employers? Once upon a time, being competitive in the salary market was an incentive in securing and retaining good talent. But what we are seeing now is a shift away from that.
While it is true that some Employees will resign because of not being satisfied with the remuneration package they are receiving, for others, it is about the work life balance. For others still, it is just the natural end of a working relationship.
So what can Employers do to safeguard themselves from receiving a resignation as a result of an Employee being unhappy with their renumeration?
What Employers can do to safeguard themselves from receiving a resignation because of salary and benefits issues?
Market Research
Assess the market on a regular basis to ensure the salary and benefits packages offered are in line (at a minimum) with market recommendations and CPI increases. We know that once a year the Award Rates go up, so if you’re not reviewing on a regular basis or when this occurs, then now is the time to start doing so. It would been even more beneficial to be conducting the activity more frequently, as the recommended amount would be bi-annually.
The market is rapidly changing. This practice will ensure you remain competitive in the market, paying in line with the recommendation and offering appropriate packages to incoming Employees. It’s also a useful activity to review existing Employees when new ones join to ensure that the roles within the business are still comparative and that you’re not constantly recruiting because of wage inadequacies.
Additional Benefits
On top of an Employees base salary, Employers can offer a range of other components to make up an Employees remuneration package.
These components can include:
- Fully maintained motor vehicle
- Mobile phone for personal and private use
- Additional superannuation contributions
- Additional annual leave
Whilst the items above are seen as non-monetary cash in hand benefits, they do contribute to the overall remuneration package of the Employee as non tangible reward that they can receive future benefit from.
In addition to an Employee’s remuneration package Employers can offer, if applicable, a commission agreement to the Employee. A commission agreement dictates that when key performance indicators are achieved, additional money is provided to the Employee. These are designed to stretch the Employees performance to go above and beyond the traditional components of their role.
Salary Reviews
Employees want to feel valued and understand that their contribution to the business is appreciated. Having a conversation on an annual basis with each individual Employee about their remuneration package is important. Being open, honest and transparent with them on the reasons for or against an increase in salary is important not only for workplace culture but for Employee happiness.
Conducting an analysis of your salaries and benefits can be complex and time consuming. There is lots to consider and take in into account. Looking at the correct data is critical to ensure your remuneration reviews include the appropriate information and are therefore meaningful.
Need help with determining competitive salaries and benefits for employees?
Now Actually is experienced at conducting Remuneration Reviews. In this process we ensure that salaries are in line with not only legislation but also remaining competitive within the market. We review the benefits you offer and provide advice on tactics you may wish to implement moving forward. Contact us to discuss ways we can support you.
