By Michael W. Hill, Mobius Vendor Partners Executive Consultant, Birkman Professional

In today’s job market, providing competitive pay is more crucial than ever. According to a Glassdoor survey, nearly 67% of job searchers regard income as their top priority when evaluating job offers. I would add that your existing employees are very aware of whether their current pay is competitive or not.

 What are some of the advantages of competitive pay?

• Competitive pay can act as a motivator and increase productivity.
• If your pay scale is not competitive you will not attract top talent.
• Competitive pay shows your employees that you care.
• Competitive pay makes recruitment much easier.

How do you calculate a competitive wage?

• Magazines and the web can provide you with both Market and Industry Trends.
• Many industries publish yearly studies on what the current salary and benefits are for their industry.
• Research shows that salaries vary by state and even by city, so investigate accordingly. Some sources to use might be: PayScale and/or Glassdoor.
• Take into consideration employment supply and demand for your industry.

Because the job market is constantly changing, you must continually assess and change compensation practices to be competitive – do the necessary research.

Employees do not always pay attention to everything that makes up their compensation package! Here are the four components: Base salary, Bonuses, Benefits (health insurance, retirement plans, etc) and maybe other Perks that might be unique to your company.

These need to be communicated to the employees often. One company I know reviews employee compensation packages with their employees twice a year!

Do your employees know how competitive and what is included in their compensation package?

You may want our help.

At Mobius’ Employee Experience – EX Consulting Employee Experience – Mobius Vendor Partners (mobiusvp.com) – we have the software to survey your employees so you can make the best decision for your company and respond to your employees’ needs. Contact us to get started.