Every employee of any organization is there for the pay check which they receive every week or month. No one is there to work for the pure pleasure of working. The one who does so creates a new company or enterprise to bring to life dreams visualized with open eyes. Therefore, regardless of the job description, and designation; the cutting edge is necessarily the compensation package you offer.
Attract and Retain the Best Talent
Of course, there will always be people who look to career growth prospects, stability (no fear of the organization folding up in the foreseeable future), and public image of the company. However, the key to attracting and retaining the best talent in the market lies in the kind of compensation package and work environment your organization offers. The difference between the run of the mill HR professionals, and the new post-pandemic HR professional is their ability to be transformational, strategic, and disruptive. This includes understanding the needs of the workforce, and being empathetic to their aspirations.
Build an Effective Compensation Strategy
Savvy HR leaders understand that the compensation package is not simply the wages paid for work. There are numerous other factors which can make it look enticing include benefits like health insurance coverage, baby care support or in-office creche, car pick up and drop, bonuses during the festival season, and what is becoming increasingly a major factor for prospective employees ― support for reskilling or upskilling, since that is what keeps them employable as the years go by. Given the current scenario where even tech giants are rightsizing to bring costs under control; this aspect might prove the decider.
Stay on the Right Side of Federal and State Requirements by Ensuring Pay Parity for Equity and Equal Opportunities
Being compliant with the Fair Labor Standards Act (FLSA) is vital for every organization operating in the USA. Further, the Equal Pay Act of 1963 was enacted to assure that there is no gender discrimination in wages; though ground realities depict a completely different picture. The Ohio Equal Pay Law (EPL) prohibits discrimination in the payment of salaries based on race, color, religion, sex, age, national origin, or ancestry for jobs that require equal skill, effort, and responsibility, and which are performed under similar conditions. Most importantly, never lose sight of Title VII of the 1964 Civil Rights Act which is aimed at ensuring better access to better employment opportunities for everyone. Gender and racial sensitivity is needed to ensure pay parity and equal opportunities for all.
Get Creative with the Compensation Package
When you draw up your compensation package strategy, you will need to keep in mind not only rising costs, but also that you should be able to attract the kind of talent which can give the top management the leeway to evolve more impactful development plans. Therefore, you should factor in the cost to company in terms of salaries or hourly wages; commissions; bonuses etc. as part of direct compensation. However, the indirect compensation can include issuance of devices like smartphones and laptops, paid time off, shares in the company (to assure regular payments via dividends). The last has been a very effective tool as it gives the employee a stake in the company literally.
Takeaways
- The pay package you offer might be the secret ingredient which brings in the right talent.
- Compliance with pay parity and equal work opportunities is a must.
- Be empathetic towards the needs of the prospective employee. Find out what they really want.
- The new post-pandemic HR professional needs to be transformational, strategic, and disruptive.
