To stay competitive in the battle for employees, you must focus on the 3 Cs: compensation, culture, and communication. Focusing on all three will help you attract employees to your company and incentivize the good ones to stay.
Consider Compensation Beyond the Paycheck
Many business owners see compensation only as a number that appears on their employee’s paychecks. However, you need to view compensation as not just the salary you pay, but also the benefits you offer.
Given the rising cost of healthcare, many prospective employees will likely scrutinize your offering before they come on board. To compete, you need to ensure the healthcare plan you offer aligns with similar employers or is even a little better, if financially possible. Carefully review your offer each year before re-upping to ensure it still works economically for you and your staff.
A robust workplace retirement plan can also attract employees to your firm, with a recent survey finding that leaving their current job for one that offered a high-quality 401(k) or other plan as the choice of 65% of respondents. A retirement plan can also help you as a business owner build tax-advantaged personal wealth away from the business while reducing your business taxes.
There are several retirement plans you can consider. Selecting the right one for your business means weighing your options based on your company size and how much you want to contribute. Learn more about choosing the right retirement plan for your business.
To help retain your current employees, consider asking or surveying them about what benefits or perks would be valuable to them. Taking employee input can make selecting a benefits plan out of all the available options much more effortless, and ensure the money you spend on benefits is helpful to and appreciated by your staff.
Build a Strong Company Culture
Moving beyond compensation, many people look to work alongside other like-minded people, doing work they can feel proud of. That’s why building a solid business culture is essential. When hiring, strive to find candidates who will align with the values and mission of your firm, instead of just looking for an individual with the correct skill set.
Encourage your employees to recommend colleagues for open positions by rewarding them for referrals. It is a balance, though – you want to avoid hiring too many workers with the same viewpoint, as that can lead to groupthink and a culture where no one challenges anyone else.
With the rise of remote work, remember that many in-office perks, company-sponsored meals, or happy hours may not be as attractive to workers as before. Try to be creative in bringing employees together and helping them connect. Consider informal video meetings, so employees can see and interact with each other without an agenda.
If your budget allows, periodic gatherings or retreats can let staff know each other better. Find a way to praise workers publicly so that all staff can see your commitment to lifting your team. Never underestimate the value of company swag. Creative and affordable options can reflect your brand, mission, and values. And employees do appreciate something fun or useful that allows them to show off the company they are part of.
Foster Strong Lines of Communication
When there is a lack of communication around critical company issues, such as business performance or how workers can get promoted, misinformation and gossip may fill that void. Also, if some of your workers are working from home part-time or totally remote, they may feel cut off from what’s happening in the office. Frequent, consistent employee communication is critical to keeping people engaged.
A company newsletter, a periodic staff meeting, or even an informal email from you can go a long way toward helping everyone feel informed and connected. People may not agree with all your decisions, but they’ll understand and respect them more if they appreciate hearing news directly from you.
Remember that the lines of communication run both ways. Be sure your employees know they can contact you or your leadership team with any questions, concerns, or ideas. Consider sharing an email address specifically for feedback, or even allowing employees to report issues anonymously.
Becoming an Employer of Choice
The current tight market for valued employees won’t last forever. Still, talented workers will always be in high demand. By continuously taking steps to compensate them fairly, communicate with workers, and build a strong culture, you’ll keep your valued workers around and make your business an employer of choice for candidates.
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