Competitive compensation strategy: More than good pay needed to attract top talent

The ongoing Great Resignation is proof that an update to your compensation strategy may be in order. In fact, a study by Mercer found a majority of employers (70%) are re-evaluating their compensation and benefits because of challenges with attracting and retaining talent.

Your peers are realizing that current and potential employees are looking for more than a paycheck and medical benefits. Even flex-time and remote work are starting to become standard.

To acquire and keep the employees necessary to move the business forward, it’s going to take a “total rewards” package approach to compensation that keeps the whole picture in mind.

Ask yourself: What benefits or bonus incentives can you provide to stand out as a best-in-class employer?

Considering compensation strategy

Good pay is still important, and you’ll need to at least think about annual increases to employees’ compensation that are budget-feasible.

According to Mercer’s most recent U.S. Compensation Planning Pulse survey, actual average merit increases are 3.4%, and average total increases are around 3.8%.

When it comes to benefits enhancement, here’s what employees are looking for, according to Mercer:

• Flexibility to prioritize family responsibilities for a sensible work-life balance (For some people, this is even more valuable than a remote work option.)
• Enhanced mental health support (This can include access to mental health practitioners, company-provided education, or even various options for stress relief like recreation and massages.)
• Career guidance and skill development for personal development (with possible pay incentives based on the acquisition of skills)
• Realistic retirement planning that takes socioeconomic challenges into account
• Lower healthcare premiums
• A work culture that’s safe, accepting and supportive for all