Competitive wages can be loosely defined as pay that is equal to or better than what other companies are paying for the same role. When your budget is tight, it can be tempting to keep wages low, but this is exactly the wrong approach. Here’s why competitive wages are essential to finding and retaining top talent.
Showing Commitment
Today’s workers want to feel like they matter. Offering competitive wages shows that you are committed to them, and that you value their contributions. Top talent will see that you aren’t just trying to churn through employees in the name of profits, but that you are looking for a long-term professional relationship based on mutual respect.
Investing in the Future
Hiring costs money, and the higher up the corporate ladder the position sits, the more it is likely to cost to bring on an outside candidate. In addition, outside candidates have to learn your company culture and ways of doing things from the ground up. Paying competitive wages helps you retain loyal employees for the long run, providing you with a solid pool of experienced candidates to promote from within.
Reducing Turnover
If you don’t pay competitively, you are likely to lose employees frequently to your competitors. This means a continual cycle of spending your resources on recruiting and hiring. It also makes it more difficult to build team cohesiveness, and wastes a lot of time on teaching a constant stream of new hires the ropes.
Don’t Forget About the Benefits
Competitive wages are essential, but they are only part of the equation. Today’s top talent is also looking for perks. Beyond such traditional benefits as health insurance, try to offer something unique to set your company apart. For example, you might offer onsite childcare, flexible scheduling, or remote work options. Other perks to consider range from catered lunches to pet insurance.
Survey your current team for ideas, and be sure to take into account the average age and family status of your workers. For example, young singles may want different perks than middle-aged parents. You could even offer a menu of options for workers to choose from.
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