It’s no secret that in this candidate-driven hiring landscape, your top choice talent is receiving multiple job offers. Not only that, but nearly half of millennials in permanent employment say they have itchy feet about their current role.
In order to attract the best talent and hold onto your existing top performers, your company will need to have an attractive remuneration package within its staff retention and hiring plan.
Why is it important to have a good remuneration package?
Falling out of touch with what makes a strong employee remuneration package (the total offering your company gives to employees, including salary/wages and benefits or rewards) can cost your business badly.
The current hiring landscape is moving fast, no matter which industry you operate in. Skilled, top quality talent is in high demand and many companies are in competition with one another. A strong remuneration package adds to your employer branding and is one of the factors that can make a business more attractive to those skilled candidates.
Not just effective for attracting new talent to the ranks, comprehensive remuneration packages also help to keep your existing employees happy. In London alone, 37% of employees say they’d leave a current job for an equivalent role with a better remuneration package—a statistic that really highlights the importance a competitive remuneration package can be.
But what does a ‘comprehensive remuneration package’ look like to an employee?
Comprehensive remuneration package examples
The first step to ensuring that your current salary and benefit offering is on-point is to gauge it against other remuneration packages in the UK to see how it compares.
This provides a simple starting point to build on. Here are some of the things that candidates are telling us they’re looking for:
- Competitive salary
The salary for your most in-demand positions should meet or exceed the market standard, as a general rule. It’s also important to review your salary and benefits structure regularly so you continue to offer competitive wages and attractive benefits for new and existing employees.
It’s common for businesses to offer incentives in the form of anniversary bonuses or merit-based bonuses to reward achievements and loyalty. Benefits like these should work alongside strong, clear targets to help drive employee engagement and development.
- Flexible working hours
A report by CBI showed that as of December 2016, just one in 10 job listings mentioned flexible working hours. Putting this into the context of employee expectations, a report by Lancaster University’s Work Foundation showed that 44% of respondents said flexible working allowed them to get more done and 42% said it made them feel more trusted.
- Work-life balance
In an age that encourages people to be connected 24/7, employees are drawn to companies which promote a healthy work-life balance. Only 24% of 18 - 34 year olds are ‘very happy’ with their work-life balance, showing that there is some way to go. Lancaster University’s report shows that 35% of professionals said a flexible attitude to working hours was essential for their work-life balance and also reduced travelling times.
Our new report IT’S TIME WE ALL WORK HAPPY™:The secrets of the happiest companies and employees suggests that an effective way to manage this is to lead by example by encouraging employees to take holidays and to go home on time.
- Unique benefits
Aside from meeting the industry standard, your remuneration package should aim to include some unique benefits that make your role stand out. Some businesses offer relocation and housing assistance, and half of UK employers introduce wellbeing schemes for employees. Other options to consider are: financial planning, adoption assistance, legal assistance, emergency childcare or elderly care or pet health insurance.
Common remuneration misconceptions
The modern professional’s idea of a comprehensive remuneration package is built on much more than just bonuses and salaries. Here are some of the lesser-known elements that make a package more attractive:
- Flexible benefits
1 in 2 professionals would leave their current employer if they were offered a flexible benefits package for the same role elsewhere.
- Career progression
42% of employees say that the opportunity for progression is a huge factor in how happy they are at work. A quarter of them said they’d previously turned a job offer down because they were worried about their future career development.
- Small perks can go a long way
Small regular perks, like team lunches, gift card rewards and celebrations for successful projects are all ways to make your employees feel appreciated.
According to research by Aon Hewitt, 62% - 70% of organisations are now offering flexible benefits, so it’s in your best interests to consider negotiating with candidates and existing employees.
Working out a remuneration package should feature highly on your hiring plan to-do list. Now that you know what candidates are looking for, re-assess your offering and make sure you’re not only in-line with other companies in your industry, but that you’re also bringing something unique to the table too.