The team at Croner took the time to share their expertise on the importance of getting staff salaries right if you want to not only recruit talented individuals but retain them as your business grows.
In the modern business world, it’s common to have a high staff turnover rate. Many of your employees are on the lookout for higher paying roles.
There’s more opportunity than ever before for talent to choose from, whether it’s a local business or a far-flung location.
So, how can you improve your staff retention? One often overlooked technique is salary benchmarking.
In this piece, we’ll take a look at some of the systems that can keep your best employees on your payroll. And it’s a lot simpler than you might think.
Why do employees leave?
As an employer, you must be aware of the potential for staff members to suddenly find a new role.
They may be located in the North East of England and offer loyalty to your business. But they can receive a job interview out of the blue from a recruiter on the other side of the world. Suddenly, your wage package may not seem as appealing.
And this is what you have to be aware of:
• Employers often underestimate how much of a salary increase is needed to keep employees in their role.
• If you lag behind the leading market rate, you will have a high turnover as staff look for a wage that fits their experience.
• Paying new starters higher wages than long-term staff can cause issues.
And all of the above can be controlled if you take the appropriate actions to ensure employees are on a relatively level wage level.
It can prevent your current employees looking elsewhere to find a better wage. A Salary benchmarking database helps compare salaries can help you get on the right path to preventing this.
Recruitment and wage foundations
First off, what is salary benchmarking and what are its benefits?
It’s a straightforward process. You need to search through the market to find the standard wages for the various roles you’re offering. Doing this ensures you:
Salary benchmarking really sets a foundation for your wages. It’s an essential part of your recruitment strategy to know what you should pay your staff members.
Hiring is about much more than writing a job description with some hazy details. You’re competing with other businesses to hire the employees that can push your business forward.
So you can consider simple techniques to get your essential salary information together. Have a tour around job sites to see what your competitors are offering. The likes of Glassdoor, Monster, Reed, CVLibrary, and Total Jobs, are all good places to start.
Establishing salary surveys
Market data is what you want. Industry research will help you find it.
When considering a wage, you should always consider details such as your industry, turnover rates, the amount of staff members you have, location, and the level of the role you’re advertising.
To help you stay on top of these rates, you can use salary surveys. These make sure you don’t fall under, or exceed, the standard industry rate.
But as long as you’re in the know, you can adjust your salaries accordingly throughout the year. This ensures staff don’t start to look elsewhere.
If you actively show you have an interest in offering them wage rises and other perks, then they will appreciate working for your business.
Winning over top talent
Of course, salary benchmarking can help you steal an advantage over your competitors in various ways.
If you want to attract top talent, you can gain an understanding of the best wages on your market. And then go one better.
If you’re offering above the standard rate, then you can attract the very best, offer them a competitive package, and in the long-term this provides a much better chance of retaining them.
Word of mouth
If you’re offering competitive salaries, this also spreads word of mouth. Not only will you retain staff, but they’ll put in a good word for you.
It’s free PR thanks to the likes of Glassdoor. On that site, current and former employees can review your business.
Positive reviews, as well as information about strong wages, will only ever help your business to grow.