As today’s economy continues to gain strength and momentum, companies are becoming more concerned with attracting and retaining good employees. The improving economy calls attention to the fact that the human resources (HR) function in many organizations needs to be empowered to be strategic. Most employees, no matter how much longevity they have or how much talent they bring to the table – feel disposable at times. In response, organizations should concentrate on how to attract and retain employees through HR strategy.
Companies are becoming more creative in the ways that they attract, train, motivate, empower and reward employees. Are you getting the right people and are you offering the right types of rewards to reinforce favorable behaviors?
One way to attract and retain key employees is to develop a compensation philosophy and structure that is competitive and keeps employees motivated. To determine if you are paying competitively you need to know what comparable employers in your area are paying for similar positions. Once you have determined the market price for each position you can implement a competitive compensation program that is balanced between base salary and incentive compensation
Additionally, a tighter job market requires that companies present themselves as an employer of choice, a situation that is leading HR to offer benefit options that appeal to a wider range of employee. It is now more important than ever that organizations find innovative ways to leverage and supplement their existing benefit plans. Concentrate on the benefits that employees value the most to meet the needs of your workforce – enhancement in health care, retirement and leave benefits may provide the most bang for your buck.
An organization must retain employees who are high performing and share the organization’s culture and values. By tying benefits and compensation to the organization’s culture, employees who best support the organization’s culture and values are hired and promoted. These employees become an organization’s leaders and shape its future growth and success.
To learn more about how RSM can assist you with your strategic HR planning process contact RSM’s management consulting professionals at 800.274.3978 or email us.