As a reflection of leadership’s strategy about how it values its employees, a well-established compensation system allows employers to optimize on employee engagement, productivity, financial resources, and organizational goals.
Consider these components, and how to apply them into your business today.
Make sure to pay employees for their individual performances as well as reward them for efforts which support the business goals of the company, department, and/or team.
Realistically communicate the company’s compensation program. Ensure whatever the message conveys, it is done so in manner that is fair, competitive, appealing and respectable. If the market conveys a particular value and the employer offers below the market value, then employee dissatisfaction and turnover rates will likely increase.
Rewards and Recognitions
Ensure that project recognition is differentiated from individual recognition; in doing so, each employee’s value and relevance can be more easily identified.
Pay attention to the timing of rewards since desired performance should be rewarded as quickly as possible.
Keep performance measures as simple as possible, and limit the number of measures to track.
Taking care of employees with a well-designed and well-communicated compensation program will help in the long-term investment of your employees as the company’s strongest asset.
Please contact us to see if MidwestHR is the right partner for your growing company.
MidwestHR supports growing companies by helping them simplify their business through HR Outsourcing. MidwestHR is a Certified Professional Employer Organization (CPEO) headquartered in the Chicago land area. As a CPEO, we provide business owners, CEO and CFO leaders with relief from dozens of time-consuming HR & employment related functions, while helping protect the business from ever-increasing HR demands and liabilities. In addition, our clients have the ability to offer “Fortune 500 type” benefits, while being able to better control their premiums in the process.
MidwestHR regularly works with all types of businesses, including medical practices, surgery centers, non-profits, professional service firms, technology companies, printing companies, religious organizations, start-ups, manufacturing businesses, trucking companies and financial institutions.