The Top 4 Advantages of Salary and Benefit Reviews
August 14, 2023
Salary and benefits are an essential component of our everyday lives. What we earn and the benefits we receive tremendously impact our way of living. Our salary dictates our ability to live certain lifestyles, and benefits can offer us certain securities such as healthcare and retirement plans.
Organizational leaders must stay in tune with the salary and benefit demands of the workforce because the economy experiences ebbs and flows. Wages are impacted by factors such as supply and demand, inflation, regulations, and cost of living, which are constantly changing, making it crucial for leaders to conduct regular salary and benefits reviews to stay ahead of the competition. We share our expertise on the value of salary and benefits reviews and how we can help you be an industry leader.
What and When
When leaders conduct salary and benefits reviews, they assess the individual team members’ impact on the organization through daily tasks and overall performance. These reviews determine if the salary and benefits are competitive, enticing, and current with market trends. Organizations should strive to conduct salary reviews at least once a year but remain flexible as economic impacts can happen more frequently.
To stay competitive is to stay relevant in the business world today. When organizations fall behind their competitors in total competition, they risk losing market share and their position in the industry, as they may bleed and deter talent. But it’s critical to note that although compensation packages are essential to staying competitive, it is only a piece to the larger puzzle of being a market leader.
Attract Top Talent
Job seekers consider salary and benefits as one of the top reasons to apply for a position.
In fact, 46% of job seekers consider salary before applying, so employers must stay ahead of the curve. When leaders are in tune with the market rates and benefits, they can attract the best talent.
Retain Top Talent
Not only can companies attract the best talent, but they can retain the best talent when they conduct regular salary and benefits reviews. Employees feel a sense of recognition and gratitude when leaders take the time to review their compensation packages. When employees feel seen, they become more motivated to be successful and more loyal to the organization.
When conducting regular salary and benefits reviews, leaders gain the advantage of staying knowledgeable about their employees and their competition. Reviews require internal research, external research, and honest conversations to be effective.
Leaders can gain insight into employees’ state of mind during compensation reviews. When leaders give their employees space and encourage them to bring their ideas and thoughts to the table, they invoke a trusting relationship. When trust is established, employees will feel more comfortable sharing insight into their work woes and possible improvements that can be used to make the organization stronger.
Investing time into regular salary reviews allows leaders to learn more about their competition. Performing compensation analysis on competitors will ensure real-time data and enable leaders to stay on pace with market fluctuations. When leaders know the market trends, they gain the upper hand in recruiting and retaining the best talent.
Organizations want dedicated employees who are excited and engaged at work, which requires a consistent effort on the part of leaders. Regular benefit and salary review meetings are a simple way to keep employees engaged and motivated.
Leaders who take the time to recognize achievements by employing salary reviews create a sense of trust through acknowledgment. This acknowledgment can lead to employees going above and beyond and creating an atmosphere of positivity. Employees who feel engaged positively impact the culture and the bottom line.
Regular salary and benefits reviews give leaders the edge of staying fair and equitable throughout the organization and the local market. Remaining equitable is vital to an organization because 80% of job seekers search for employers who value equality in compensation and various other factors. Compensation reviews will help uncover discrepancies and imbalances with compensation packages and keep the organization equitable.
Remain a Market Leader
Keeping up with the ever-changing market and fluctuating economy is a job in and of itself. When businesses partner with talent solutions firms, they take the burden of discovery off their plate. At Innova, our teams take pride in staying up-to-date with the market and can assist our clients with salary and benefit negotiations and reviews.
Contact us today to discover how Innova can assist you in becoming and remaining a market leader in your industry.