3 Reasons Compensation Is Not Enough to Retain Top Talent
Let’s start by saying compensation is necessary to your retention efforts, but it can’t do the job alone. Money is obviously important, but a main component to retention is keeping your top talent happy. And happiness is still one of those things money can’t buy.
As your top talent, these employees expect to be compensated fairly. Pouring more money on top of their salary won’t make them happier. It could make an unhappy employee stay longer for a limited time, but this short-lived satisfaction won’t placate an unhappy employee for long.
So what else do you need to add to your retention efforts?
1. A strong benefits package
A benefits package, or lack thereof, can make or break an employee’s decision to stay at your company. This is especially true for small to midsized companies; 64% of employees said that good benefits swayed them to work at their employer. Top talent expects powerful benefits that will provide for them and their families.
The #1 ranked benefit is health insurance, so it’s particularly important to provide well in this category. Great health benefits can help employees cut back on costly out-of-pocket medical expenses and save them money. Happiness: check!
2. Room for growth
Even your top talent need to feel that there is a place for them to go. Whether it’s career movement, skill development or relocation, it’s important to make employees aware that there is always potential for movement. If they feel as though they’ve hit a wall, they may decide there’s nowhere left to go, but to another company.
Instead, make sure to encourage top talent to travel new avenues and try new things, and give them the means to do so whether it be through classes, business trips or networking events. If a new idea is brought to the table, welcome the proposal. Make sure they know the boundaries of their job are fluid. Happiness: check!
3. A culture of recognition and appreciation
Finally, it’s necessary to acknowledge great work. Show your appreciation not through compensation, which will only temporarily boost morale, but through a reward that will make employees aware of your appreciation throughout the year. Find out what it is your top talent wants by asking (polls are great for this), rather than guessing.
Remember, they won’t know you’re noticing their hard work until you show them. Happiness: check!
Providing these 3 things on top of compensation will create the right environment for top talent to work, grow, and be happy. See how Ultimate Health can support your retention efforts.