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Turn Your Employees into Growth Partners

posted by TrueNorth Employee Benefits on Thursday, November 5, 2020

TURN YOUR EMPLOYEES INTO GROWTH PARTNERS.

Uncertainty can lead to complacency. We believe it’s the right time to embrace a growth mindset. This is an opportunity to re-engage, to turn your employees into growth partners, and think about relaunching into this new economy that’s approaching. 

Compensation strategies are a key aspect of attracting and retaining employees. Often our best talent, is our competitor’s top recruitment pool. Read that again – our best talent is our competition’s’ top recruitment pool. So what do we do to keep our workforce engaged and fulfilled? 

Which is better? Higher salaries or bigger incentives? 

5 keys to balancing salaries and incentives:

1. Define value creation. Once value creation is defined, compensation can follow a formula for sharing value in a way that aligns key producers with the company’s business plan and priorities. 
2. Define your pay philosophy. At its simplest level: this is why we pay you. A written statement of what the company is willing to “pay for”. 
3. Replace incentives with value-sharing. The premise should be to promote value creation and value-sharing. When you help us create value, you participate in that value. Define value creation around the shareholders’ most important goals. 
4. Understand the talent market. Compensation is a part of the experience. It can be difficult to attract key employees among a shrinking pool of skilled labor. We need to proactively pursue the people we need, and create an environment that draws them in. 
5. Create structured flexibility. Create a rewards strategy that is flexible, and combine it with an operational structure that is enduring. 

There is no more important investment for any organization than the investment in human capital.