Is Your Compensation Plan Boring Your Employees?
Categories: Blog, Compensation, Strategic Planning
It’s not surprising that one of the most frequently asked questions of advisor firms is how to attract and retain talented people and reward them effectively with a remarkable compensation plan. Compensation packages are one of the largest line items in a budget. Ironstone finds that many firms are struggling to stay abreast with changes and new trends in salary and compensation beliefs while experiencing confusion on how to properly control organizational costs and remain viable.
Today’s compensation trends are moving from a base salary package to plans that include:
• A measurement system for variable pay
• Less emphasis on increasing base pay
• Overall firm goal achievement
By implementing a compensation plan that includes the directives listed above, both the employee and the firm benefit. Compensation plans that incorporate these strategies foster teamwork that focuses on the concrete goals of your firm.
In order for firms to stay competitive, you must frequently change your compensation program and have a plan in place to do so. Your imagination is your only limitation to retaining and motivating the kind of people who are catalysts for the success of your firm.
We recommend that your firm be pro-active in developing and refining your firm’s compensation plan. Recognize that “quality of work life” rewards and appreciation play a vital role in the value of your firm’s benefits package. Your firm can be pro-active and creative by adding an array of perks to the overall benefits package you offer. Consider the following:
• Recognize results with a one-time monetary payment
• Offer opportunity for flexible work arrangements
• Write thank you notes to acknowledge a team member’s “above and beyond” actions
• Present pre-paid legal, education, and insurance benefits
• Place an emphasis on training and development of your team
• Introduce employee wellness initiatives
Lastly, remove the dead-end sign. Your team needs to see a clear and concise view of the opportunities within the firm for growth. You can add a suite of perks to your compensation package, but without the chance for growth and development, your dazzling compensation package won’t work.
As you contemplate the strategic changes you want to make in your compensation plan, do not forget that your team can be your most valuable asset. It is in your best interest to focus on reducing stress at work and in your employee’s personal lives. Reward your team, without hesitation, if you hold a team of energetic, talented and growth oriented individuals.
Developing and offering a compensation plan to your employees with traditional and non-traditional elements is both egalitarian and accountable. Download Ironstone’s Compensation Planning Checklist! CompensationPlanningChecklist
Contact Ironstone for more information and additional strategies that will assist you in developing and strengthening your compensation plan. You can find more information regarding compensation in our blog- “Human Capital Strategies.” http://aeschlapia.wordpress.com/2012/03/19/human-capital-strategies/
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