Two weeks ago the team at Figures - a SaaS based compensation database platform for the startup and scale-up market - posted an article highlighting best practices for maximising employee satisfaction through effective compensation.
Employee satisfaction can make or break businesses and in the SaaS & Tech world, it matters even more. The majority of start-ups and scale-ups are targeted on growth and growth is key to success.
However a real stumbling block for this is employee satisfaction and if you are not ensuring this is high, then you will churn through your staff.
And (trust me when I say this) past candidates DO talk to prospective candidates - bad reputations are easily gained but not so easily shaken off. As we well know, a disgruntled member of staff will go hell for leather on Glassdoor and that will always be a candidates first point of call when researching a business...
Effective employee compensation best practices
Figures found that effective compensation is still the most important issue.
When looking for a new job 41% of job searches are looking for a substantial salary increase.
Obviously compensation can mean more then salary. People will look for benefits such as healthcare, enhanced mat and pat leave, shares, pension - the list goes on. I did cover this topic in a past article, and if you haven't read it here's a link for when you have a couple of mins 😉
Figures broke the best practices down into 4 key aspects that you need to do with your people to ensure employee satisfaction and make them feel wanted.
- Clear Communication
- Transparency to promote trust
- Overview of total rewards
It's mad to think that some businesses miss out on 3/4 of these when I am speaking with prospective candidates.
Not clearly communicating your compensation plan - that could be anything from how your maternity leave works to how your bonus or commission is calculated
Transparency on salaries. A good start is within your job adverts to set a basis on what certain roles pay, which shows what your staff can achieve if they start on the lower end of the scale.
Bench marking is vital. Setting competitive salaries based around industry, competitors and growth will always boost retention and satisfaction. Mix in annual salary reviews and you have created a successful salary bench marking tool.
Give an overview of total rewards, because as the article from Figures states, compensation is more than salary alone. Clearly laying out every benefit you offer and explaining these in an interview process to both prospective candidates and your employees will boost employee satisfaction.
We have all worked somewhere where someone mentions something in your benefits package that you had no idea about! Like me paying £250 for the dentist when it could have been covered through my dental plan.
Covering all of these aspects and having a competitive compensation package will really help with employee satisfaction and will boost productivity by as much as 13%, Figures found.
With the current economic climate and shortage of tech talent, companies need to show their people they are their number #1 priority.
The employee experience matters more than ever before. Companies need to step up and show their people that they matter. But in the current economic climate, where hiring freezes are combined with a lack of suitable talent, this can feel like a challenge. One of the best places to start is ensuring employee satisfaction is high. While there are many different factors that go into employee satisfaction, one of the most important issues is compensation. When looking for a new job, 41% of job searchers they’re looking for a substantial salary increase.Read the original article here