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