If you want to keep top-performing employees, you need to pay them well and what they are worth. Accurately paying an employee will make the employee stay loyal to you and not jump ship to a major competitor with open arms who will compensate them like you should have done. Companies that pay their employees well and explain their compensation plans with employee communication videos attract dedicated people who want to be a part of your team.
You will create a good reputation in your industry as a company that pays its employees fairly. Not all companies have this distinction in the corporate world. Some companies are known for penny-pinching their employees when it comes to decent salaries. In the long run, this will hurt your company as employees will start to penny-pinch you with less productivity on the job. One way to avoid these pitfalls is to develop a fair and balanced compensation plan and explain that plan with employee communication videos.
Developing a Compensation Plan
Developing an effective compensation plan is important to keep your employees happy and engaged in your company. An effective compensation plan explained and propagated with effective employee communication videos is a foundation to building a company culture that motivates and encourages high morale in the workplace. Your compensation plan should demonstrate a philosophy that keeps productivity high and worker dissatisfaction at zero. Your compensation plan should include the following:
• A fair base salary (hourly, yearly or commission structure)
• Health insurance benefits
• 401K or retirement pension
• Performance bonuses and paid vacation
Including the above benefits in your compensation plan will help your company better recruit, retain and satisfy employees. Studies reveal that companies who offer health benefits and retirement packages have a greater chance of keeping employees than companies who leave these items out of their compensation plans. Furthermore, if you desire to attract top-level staffers into your organization, you might want to consider offering extra perks, such as gym memberships, tuition reimbursement, on-site day care, increased vacation time, and other benefits that top-level talent look for in compensation plans.
Understand Salaries and Job Descriptions
To offer an accurate, competitive, and fair salary to your employees, you need to create job descriptions for the positions in your company and in some cases explain them using employee communication videos. After you create these job descriptions, you will need to assign salary ranges for each of them. While it may seem like a daunting task, there are resources and tools available to help you assign the right salaries to the right jobs. Among them are:
Laws Regarding Compensation and Wages
When you create a compensation plan, make sure you are not breaking any state or federal laws regarding compensation or wages for employees. You should have your employment law attorney or legal department explain the Fair Labor Standards Act that regulates the federal minimum wage, child labor, and overtime pay. Make sure you are following the recommendations of the Equal Pay Act in your compensation packages. An employment law attorney can ensure your company does not violate employment laws. A violation could result in hefty fines and penalties.
A Compensation Plan and Subsequent Employee Communication Videos Can Strengthen Relationships with Employees
Establishing an effective compensation plan is one of the most important things you can do for your company and its employees. A compensation plan should give your employees a reason to stay on the job, and not leave you for greener pastures. A fair compensation plan can solidify the relationship that will keep you and your employees together for a long time, especially with effective employee communication videos. Do the right thing and offer your employees a fair compensation, and they will do the right thing and perform superior work for you. Fair compensation makes good business sense.