There have been various stories in the press of late about the growing number of weird and wonderful employee benefits. From offering paw-ternity leave to paying for employees’ weddings, employers are seemingly coming up with more weird and wonderful ways to attract and retain top talent. But do they really have to?
A recent article we spotted in HR Grapevine reminded companies why they shouldn’t disregard the importance of the good old salary. It pointed out that…
1. It helps to attract and retain the best candidates
Talented individuals know their worth so they won’t settle for not being paid in line with others in their sector. However, the 2017 Compensation Best Practices Report from PayScale found that just 20% of employees felt they were being fairly paid. In comparison, 44% of employers thought their staff were happy with the current arrangement…
2. Employee satisfaction impacts productivity
Research from the University of Warwick found happy employees are more productive than their dissatisfied counterparts, with happiness boosting productivity by 12% while unhappy workers are 10% less productive. One of the ways in which employers can generate happier workers is to provide them with a fair salary and regular opportunities to advance their compensation.
3. It reaffirms you value people over profits
Companies fixating on growing profits show their employees that’s their main concern. However, those that strive for better pay for their workers show that their co-workers come first; they are the backbone of the company after all. But don’t forget to show your appreciation in other ways – a Reward Gateway study found that almost half (49%) of workers in the UK would leave a company if they didn’t receive recognition or thanks for their hard work.
4. Undervalued staff could hurt your brand
How often do you interact with customers? Chances are, not as regularly are your employees do. But if you’re scrimping on pay, why should they be motivated to put in more than the bare minimum? And this, in turn, can hurt your brand, be it through poor customer service or producing poor quality work.
5. Higher salaries lead to higher expectations
Paying employees generously means you can expect more from them and hold them to a higher standard, which will ultimately have a positive impact on your profits.
6. If you don’t pay them well, someone else will!
Job vacancies in the UK are now at their highest level since November 2015, so if your employees are feeling disgruntled by their lack of pay in your company, there’s a good chance they’re already on the look-out for their next employer.
The key to attracting and holding onto the best employees is simple: hire great people in the first place, pay them well, reward them regularly, and show them how they can grow along with your business.
Lucy Bristow work with clients in a range of sectors including marketing, administration, HR and more and have a good grasp of the current compensation and benefits being offered in each one. Why not give the team a call today to find out how your company measures up?