Every employee has this imaginary line when it comes to being satisfied at work. It’s a line that says “I get enough pay, benefits, time off, etc.” to be happy. If that line isn’t met, whatever is missing will hold an employee back. Companies certainly can’t expect to create an engaged workforce if employees don’t feel they receive enough for the work they do.
For example, if an employee doesn’t get paid enough, it will always be a source of frustration for them. And while employees might not do substandard work, I’m not sure they will go the extra mile. This isn’t some big fancy theory. It’s common sense. Employees won’t go above and beyond for a company that’s not giving them what they feel they deserve.
Now I’m not suggesting that companies just throw money at employees. There is such a thing as over-paying and it can certainly be detrimental to pay more than the market can bear. Here are three questions to ask when it comes to evaluating compensation and benefits.
- Can the company attract the talent they’re looking for?
- Can the company keep the talent they need?
- Can the company afford to pay for #1 and #2?
So if the company isn’t able to attract and retain talent then, they might need to look at the reason they’re unable to do so. Oh, and I know there are plenty of companies saying “that new insurance law makes it impossible for me to pay”. If that’s true then those companies will have to evaluate what they’re looking for in terms of talent.
Rock star (or whatever you want to call them) employees will be able to find jobs and stay with companies that offer enough pay, health insurance, vacation and time off, along with professional development. And you can’t attract A-players on a B-player compensation and benefits package. Maybe you could during the Great Recession. But not now.
Smart companies are creating cultures where employees get enough. They’re hiring people who will be happy with what the company has created. Because companies know if they take the “enough” conversation off the table, the focus shifts to getting the work done. And keeping customers happy. And meeting company goals. And most of all, making profits.
Image courtesy of HR Bartender
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Julia Gilbert says
Great post! I agree that often times companies overlook the reason why they are unable to attract and retain talent. But sometimes it’s not a question of offering “enough” when it comes to salary and benefits. After all, at the end of the day, that paycheck is expected to come regardless of the effort they put forth in their work. In order to have a truly engaged workforce, you must also consider if you’re offering “enough” with regards to company culture. If you’re not doing enough to motivate your employees and recognize their work, you can’t expect them to stick around or produce more quality work. Ultimately, it’s the way you show appreciation that not only retains top talent, but keeps them producing like A-players.
Brendan says
I’ve been in the situation of being overpaid and of being underpaid. And while it might sound odd, I prefer to be underpaid. In the situation where I was underpaid it was because the organisation didn’t have a lot of money, it was a challenger in a very competitive industry. What did happen though was the realisation by management that people weren’t there for the money, they were there becuase the company was punching above its weight and doing amazing things. You were cared for, becuase the company didn’t want to good people to look around and realise they could actually earn more elsewhere. While the organisation were I was overpaid, they seemed to think that I was paid well so that was it. It was one of the worst employment experiences I’ve ever had. I was under utilised, unengaged, and miserable.
Cathy Shanes says
Keeping your top talent happy in a competitive economy may become a mission impossible if you don’t admit that you don’t have it all to retain the brainiest employees. Tell your employees that you are not perfect, but concentrate on the positive points and on your willingness to give them all what you really can afford.
Alex says
The most important thing for companies to achieve from their customers is Loyalty based on mutual respect. Far beyond pay & benefits, because loyalty is the key to having a stable organization. If you rely too much on factors like money and benefits, as soon as there’s any problem, good employees will want to leave, whereas loyal employees know how to stick through tough situations and rise above them.
Catie Farrow says
The last paragraph says it all – if companies take the “enough” question off the table, employees will be better able to focus on important things to productivity, like fulfilling their potentials and adding value to the brand. It’s as simple as Maslow’s Heirarchy of Needs: until people (employees) have achieved their necessarily levels of resources needed to survive (remember…based on their perceptions!), they can’t move on to feeling like a valued part of an organization (belonging) or even higher, to self-actualization, including creativity, flow, and innovation.