The hottest six steps to improve salary incentives

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six steps to improve salary incentives

How can your company better deal with the salary needs of employees? Are you sure these basic needs have been met? Which companies can you follow? Ask yourself and your superiors or colleagues, and then think about the following peak prescription:

1 Determine the employees' current mood towards the company's compensation system

if the company has not implemented the work environment survey, please start it immediately, and don't think that once a year is enough. Do you only survey customers once a year? At the same time, make sure to investigate the salary status of competitors every year

will affect the service life of the device

2 Ask the employee, "as your employer, what can we do to improve your welfare?"

you usually can't raise your salary significantly, but you can consider a unique cleaning method: take out the damping pin and non monetize benefits, which are very meaningful and recognize the needs of employees

3. Based on what your company provides to employees, compare it with similar companies and the best companies in the country

ask employees what treatment their previous employers offered them. In addition, let your human resources department check the media reports about this industry to understand the effective measures in other companies. Ask the departing employees what attracted them to choose a new job. Participate in the annual "top 100 companies" selection of fortune. Acting like one of the "top 100 companies" may be good for your efficiency. In the past 10 years, these top 100 companies, as the model enterprises of the S & P 500 index, have increased their market value on the stock market by 2-3 times

4. By conducting an internal survey in the company, we can know what effect you will achieve by announcing the internal form of the salary system to employees

by investigating the salary of your competitors, you find that you pay 10% more than them, but your employees may not know this. Find a way to let employees know this fact without sounding like boasting. Many companies publish a "full compensation report" every year, which outlines directly paid basic wages, incentive allowances, welfare plans, retirement plans, social insurance and other benefits such as car subsidies in the form of a circular grid statistical icon. By making these benefits visible and tangible, your employees will realize that in their salary system, the part beyond the basic salary is as high as 20% to 25%. You can provide a variety of unique non monetized benefits that are deeply hidden in the employee handbook. Instead of announcing these non monetized benefits, it is better to pay attention to the employees who have enjoyed such non monetized benefits in the form of photos and stories in the company's briefing

5. Search for valuable goods that are difficult to preserve but important to your employees

these valuable goods may be products produced by your company or gifts given to you by suppliers, but they often may also be owned by the top management team. Your CFO may have a ski hut in the mountains, or your vice president of marketing may have season tickets to local major league or minor league baseball team games. Why not provide these things to your employees as free non monetary benefits, especially those who exceed their goals? Seats in wooden houses or competition venues may be idle most of the time. This is also a wonderful way for your executives to communicate with front-line employees

6. Let senior executives form a team (including your highest level human resources director) and have an in-depth discussion on what unique strategy the company should implement at the money demand level of the pyramid

talk about some star employees who quit, and find out whether their resignation is related to the money demand level of this pyramid. In providing a series of iconic salaries such as basic wages, incentive wages and unique non monetized benefits, brainstorm to make the company become the leader of the best operation method. Think about whether the incentives you implement for employees are completely consistent with your key strategic goals

for companies with hourly workers, the problem of money is particularly important. It is reported that the employee turnover rate of Costco is 1/5 that of Wal Mart, because the salary system it designs is far superior to Wal Mart. Compared with Wal Mart, Costco's salary system for employees includes: higher hourly wages, more people enjoy health care services, and employees obviously pay less insurance premiums in health care. At Costco, about 80% of employees enjoy company funded health care services. At Wal Mart? Less than half of employees enjoy health care benefits, and employees who enjoy this benefit pay an average of 33% of the cost. In Costco, the theft rate of employees is 1/10 of the industry average. Plastic is almost everywhere in all aspects of people's lives, which makes the company save millions of dollars every year. Is that surprising

although money is obviously essential to meet the basic needs of employees (and CEOs deprived of wages), as people are getting higher and higher in the company, money will always become less and less important as an exclusive motivation. With the increase of income, the factors that motivate people are also increasing. Even when money seems to be the main incentive for a powerful manager, it is often just a symbol of something we see at the higher level of the pyramid. (end)

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