We understand that for any business to thrive, employees have to be put into consideration as they are amongst the most significant assets. Consequently a business has to design a motivated work-force since it is one of the key components of any successful company. In order to retain employees, companies have to come up with innovative performance measurement systems that would help in developing exceptional remuneration packages. This is because in the world today, there are a new crop of employees, who are generally information technology literate or have a host of new skills that were not available in the past.
We encourage HR professionals to develop a strategic approach to salaries and benefits as it is increasingly becoming important. A rigid labor market together with low inflation means employers have to be creative in order to remain competitive in recruiting and retaining staff without facing significant increases in pay bill costs or disruption of normal business functions.
Employee benefits in general refer to forms of value, other than salaries or payment granted to the employee in return for their contribution in an organization. Benefits are steadily becoming more expensive for businesses to provide to employees and as a result the range and choices of benefits are changing quickly to include, for example, flexible benefit plans. PPACA has recently intervened to this end to offer some employers a temporary tax credit to encourage them to provide insurance.
Recent research has shown us that a number of companies struggle with communicating benefits information to its employees. We urge HR professionals to incorporate the technology and tools in their reach to make communication strategies more successful, and to file their efforts to ensure uniformity.
In order to communicate effectively, we advise companies to start with understanding the three-to-five year strategic priorities of the business – these may include healthcare cost management, improving productivity and customer service growth by acquisition, and attracting and retaining talent. Productivity improvement programs are also another strategy that helps tie job behavior to rewards that may either be financial (e.g., bonuses and pay raises) or nonfinancial (e.g., improved job satisfaction).
Obtaining the right level of financing on terms that you can afford is also another strategy. It may be quite easy to understand the difference between an angel investor and a venture capitalist and knowing which one is right for your business but the process of actually finding an investor and giving them the documentation that will encourage them to invest in your business can be quite difficult.
Our firm is innovative to our industry and caters to early stage business startups and small businesses. We can help guide your HR professionals on the global standards for employee benefits.
Seven Characteristics of Highly Effective International HR Professionals by Warren Heaps
Pettit, J. & Ahmad, A. (2000) Compensation Strategy for the New Economy Age.
Stern Stewart & Co. Research.