Employee pay may be classed as an operating expense, but like any good investment staff salaries can deliver healthy returns.
Your business may have a great product or service but the true strength of the firm lies with your people – and top talent deserves to be well remunerated.
Salary levels are still a crucial element when it comes to attracting and retaining the best people. Quite simply, companies that do not offer competitive pay can put themselves out of contention when it comes to sourcing skilled talent in today's recruitment market.
Let’s take a look at how a smart salary policy can support your business.
A competitive salary shows you care
A carefully constructed salary policy shows you are committed to your team, and this in itself can be a tremendous incentive for your employees. Ensuring that your salaries are competitive for today's market is an important consideration. Benchmarking the salaries offered to your employees using relevant industry publication, such as the Robert Half salary guide, is one way to ensure your remuneration packages are competitive.
Your concern for the wellbeing of your employees filters through to morale and productivity.
Low salaries are false economy
Successful staff retention should always be a core business goal. Higher remuneration however is still a key reason for leaving a job. In order to attract and keep top talent on the payroll, proactive companies should adjust their remuneration policies to ensure their offers match or exceed averages in their location and industry.
When employees leave your company the impact on your organisation can be significant. Project timelines may suffer – costing the company additional time and resources to resolve.
Filling that vacancy comes with an additional cost burden. Because the hiring process takes many resources like developing and publishing an ad, time for screening applications, invitations to interviews, rejection letters, time spent for the interview, onboarding & training costs etc., the financial resources can easily escalate if companies need to find a new hire. As well, not having the right person on board may mean the company isn’t able to reach its growth targets. The specific consequences of a bad hire however are not limited to an additional expense for recruiting again. It can also affect office morale.
These financial repercussions can be avoided simply by developing a competitive salary policy.
See your people as an asset – not an expense
It can help to view your employees as appreciating assets of the business. Sure, you’ll outlay costs initially but over time your team will bring knowledge, experience and loyalty to their acumen – qualities that will add value to your firm. The challenge for business leaders is to stay up to speed with current salaries and remuneration trends so you can offer competitive pay packages to your employees.
2020 Salary Guide
What is a competitive salary in 2020?
At a time when 80% of CFOs feel the current talent dilemma poses a direct threat to business growth, an effective talent strategy couldn’t be more critical. The Robert Half salary guide provides unparalleled insights for business leaders to information their talent strategy in 2020. Explore the average starting salaries, skills and roles in demand, and popular perks and benefits being offered to secure skilled professionals. Download a copy of the Robert Half 2020 Salary Guide now.
Explore the latest hiring trends
Find out the latest trends in talent management for your business, such as the rising demand for flexibility, purpose and culture so you can attract, hire quickly and keep staff happy.
Benchmark average salaries using percentiles
Check and compare your salary level, or the salary range you offer your employees for more than 270 jobs. Everything you need to inform your hiring budgets or negotiate a competitive salary is at your fingertips.
Your comprehensive guide to 2020
We use independent research with 200 CFOs, 100 CIOs, 300 hiring managers and 2,000 professionals from across the UK, combined with our recruitment expertise to accurately depict the landscape for the year ahead. The Robert Half 2020 Salary Guide offers an extensive overview of hiring trends and average salaries across the UK.