How can you make sure your company's benefits and compensation are competitive?

Benchmarking is fine as long as you do not treat the data as ‘the answer’. Market data is simply an information point to be used in the decision making process and there are many (including some of the big data houses) who overstate its role! It is important that there is a clear reward strategy in place which provides the ‘guard rails’ for decision making (and no! Market median is not a strategy!!) The reward strategy should highlight the role of each element of the reward package and show the alignment with desired culture and values. This enables an employer to decide which elements they want to be particularly competitive with and which they can actually be below market on! You do not need to be competitive in every single element!

Some of the measures while considering the market to ensure company's benefits and compensation are competitive are as below: 1. Research the competitors….people to who we lose talent and acquire people from ..what perks and salaries do they offer for similar roles? 2. Look at the internal compensation parity. The job tree for each department should have particular salary range keeping market compa ratio in mind. The salary & perks must be defined keeping designations & industry best practices in mind. 3. Additionally, consider economic trends & changes in labour laws that might affect compensation packages. Also, tie incentives/rewards to stretch performance & business goals. This will help tailor C&B to attract and retain top talent.

La practica que mas resultado me brinda es la retroalimentación constante sirve para comprender y mejorar continuamente la satisfacción de los empleados con los beneficios y la compensación. Efectuar conversaciones individuales con empleados clave para obtener información más detallada y comprender sus necesidades y expectativas de manera más personalizada. Proporcionar un entorno abierto y de confianza para que los empleados compartan sus opiniones y preocupaciones. Practicar la técnica de escucha empática, todas las veces que sea necesario. Validar las emociones que están sintiendo, basándonos en el sentir de la persona y el presente, no en el problema. El solo hecho de escuchar es un beneficio maravilloso que escasamente se practica.

Assessing the market and "benchmarking" is a reasonable start, but you also risk falling into a "tunnel vision" of just seeing what other companies are doing, instead of assessing what your employees and your "target hiring audience" might be interested in. Ping-pong tables just because the neighbor office has them? Maybe your potential employees are more interested in benefits that would help them feel at home in the city, if you are hiring internationally. Just something to think about!

"Take the guess work out of work". It's important that the Co understands the 'Talent' ecosystem it operates in just like they do so for the 'business environment' The typical sources include industry reports, bespoke surveys by consultants, or interaction with industry colleagues, internal sources such as talent acquisition / new hires and the Voice of the Employee. The last one is sometimes lost or not emphasized enough. All of the information must feed into the Co's Rewards philosophy which is a wider concept but definitely includes compensation and benefits. This philosophy must guide actions & initiatives because they align industry , biz strategy, HR strategy, affordability, sustenance & best-fit for the talent of the Co.

It is pertinent to mention that every company defines value proposition considering their legacy, historical achievements in alignment with Vision, Mission, Core Values and strategic goals. There are several factors (depending and independent variables) such as Company Culture, WorkLife Balance, Workplace Wellness, Employee Engagement, Career and Growth Opportunities, Recognition and Rewards etc help organization stand out in the competitiveness to attract and retain talents. Regular Surveys ie Job Satisfaction, Pulse Survey help organization to act and respond to the changing requirements and upkeep tall and great place to work.

Defining the value proposition involves a number of things - Embracing differentiated needs of diverse, multigenerational workforce Understanding individual empl experiences & categorizing those experiences into personas Having mechanisms in place to enable individuals to voice preferences Holistically addressing employee needs with a nuanced & flexible approach Considering all perspectives: personas, organizational needs, industry standards, regulatory landscape, competitor offerings, cost, and societal values Formulating a rewards program that harmonizes with your other employee value proposition (EVP) offerings, and Assimilating the latest compensation data, employee research and workplace insights so you can build what works.

The Employee value proposition should be relevant. If you plan the EVP as per the employee, the employee engagement will be on point. It has to be unique. One simple way to strategise the value proposition is to categorise the employees and plan a suitable value proposition. For e.g. if we have more employees in the fresher category they will be more attracted to compensation, a good incentive plan and a good company culture. Likewise if there are more employees in mid senior level they will be more attracted to work life balance and benefits like bonus, health insurance etc.. Categorise the employees and create a unique plan that will help the organisation to retain top performers and attract top talent.

Total reward is an important leverage to be used with existing and prospect employees. One approach doesn’t fit all, but clear and shared guidelines always need to be followed. Within those guidelines, it’s still possible to tailor the specific intervention according to the person need, letting each employee decide what fits best with his/her life in that particular moment.

Developing an authentic EVP requires a deep understanding of the organization, its values and culture, as well as the needs and desires of its employees. Employee surveys: By gathering feedback from employees, a company can get an accurate picture of what employees value and what they want to improve Analysis of company values and culture: The company should analyze its own values and culture and ensure that these are clearly expressed in the EVP. Develop a clear and consistent message: The EVP should convey a clear and consistent message that defines the company as an employer. An authentic Employee Value Proposition (EVP) is a critical component of a strong employer brand.

I agree that it should be aligned with the budget and goals, but before aligning the compensation and benefits with the budget and goals we need to align with the overall strategy of the company. Where? When? How are we going? What we would like to achieve? Organization strategy must decide how we would like our employees to be paid and motivated.

Think who works for you? What age groups, background, aspirations etc... for example in older insurance companies you might want to add a "grandparent leave" for people who became grandparents. If you're very young company or a company with strong focus on animal welfare consider adding a "pet parental leave" of a few days for employees who recently adopted cat/dog to connect with them. Think about group benefit vs individual impact. Nobody works in vacuum, does it make sense to have variable bonus for almost all roles? Does it make a difference? What about group impact for larger projects? Re-think the purpose so it impacts both business goals and employees' motivation to achieve that bonus

It's very important also to raise awareness on the benefits available. What good is that gym subscription if nobody knows it's available, or what gyms accept it? Make sure you have an easy-to-find page listing all the benefits and how to request/access them, and ideally also a contact person employees can reach out to with any specific questions. Another great idea is to remind about certain benefits in your weekly/monthly employees newsletter or social media platform, especially in marked days like International Mental Health Day (for any Mental Health Benefits), International Sports Day, etc.

One of the biggest challenges in HR remains demonstrating the impact of specific interventions such a benefits program, on general results such a employee turnover and satisfaction. How do you know that a particular project or benefit has driven the outcome and not something else? When you implement a program, measure the trend over time to see if you can correlate an ongoing change. Also, consider asking specific questions of your people regarding their direct experiences of the program and its impact on their experience.

The key to evaluating impact is data. But how do we turn benefits, something that can seem so subjective, into objective data? A good way to do so is with surveys. Ask your employees what benefits they prefer, which ones they're missing, which ones could be improved... Contrast this with your usage information, mentions, and any other data points you can cross like age, location, even department, and you will have a great mapping of your benefits impact.

Evaluating the impact is a continuous process. Whenever the employees are satisfied or happy about receiving any kind of benefit from the company sharing their story with others on social platforms creates an impact. These kinds of sharing creates a buzz about the organisation and gives the organisation a chance to showcase their culture. It attracts new talents and motivates the current employees. What else helps the organisation keep their employees engaged is to listen to them, manage and resolve their grievances, helping them achieve their goal by training coaching and enhancing their potentials. These small things will help in evaluating the impact. How we can evaluate this is by taking timely feedback and surveys.

Building a competitive total rewards strategy is not a one size fits all. You need to follow a segmented approach for different talent segments. - So Firstly, identify talent segments. - Secondly, analyze each segment needs and requirements, this can be done via surveys or focus groups. - Thirdly, benchmark market practice with specified peer group to each segment, then compare current company offerings from a total reward perspective and set your competitive advantage strategy. - Fourth align management on total rewards program in line with business priorities. - Fifth, build your case to top management to acquire approvals on proposed programs.

Remember: the benefits are for the employees. This might sound stupid, but sometimes we get blinded by trends and benchmarking! Ask your employees what they want/miss! Ask your Talent Attraction department what are candidates asking for/expecting! Open communication is the best way to gather the necessary information to launch impactful benefits that will really enhance your employees experience and even your employer branding.

I believe all above points makes a lot of sense. For any comp strategy to be competitive it’s important to know the market, set goals and budgets and measure the impact. At Chegg we have ensure we are quite competitive on our C&B philosophy.

To ensure a company's benefits and compensation are competitive and align with business goals and values, HR consultants should focus on market research to understand industry standards and employee expectations. Tailoring benefits to meet diverse employee needs and ensuring they align with the company's culture and values is crucial. Regularly reviewing and updating compensation packages to stay competitive and conducting employee surveys to gauge satisfaction can also be effective. Balancing cost-effectiveness with attractiveness and aligning the strategy with the organization's long-term objectives is key for successful implementation.

Considerando as minhas experiências, aprendi que a competitividade começa com o compromisso de criar um ambiente que valorize e recompense e que seja capaz de atrair e reter talentos de alto nível. Para isso é essencial adotar uma abordagem estratégica e estar atualizado sobre as tendências do mercado, ter uma política de remuneração e benefícios bem definida, e acima de tudo, estar atento às necessidades e expectativas dos colaboradores, bem como investir no bem-estar e no desenvolvimento da equipe e fortalecer a cultura organizacional.