19 million Americans are planning to leave their jobs this year, which
will cost employers an estimated $2 trillion in employee churn. How
can you make sure your valued employees stay? The answer is employee
engagement—motivating good workers to remain at your company, and
inspiring them to go above and beyond every day.
Engagement’s link to compensation
Employees are more likely to have high engagement if they feel
appreciated by their employer. A major component of the appreciation
factor is total compensation, including salary, bonuses, health
insurance, 401(k) matching and other benefits. According to employee
engagement expert Leigh Branham, “There is no more emotionally charged
issue for employees than what they are paid for their contributions.
What we make doesn’t just pay the bills—it measures our worth in the
most material way.” This is why inadequate compensation drives
employees away. It’s not necessarily because they can make more money
working at another company, but because they feel devalued and
unrecognized.
Show me the money
Whether or not you plan to increase employee pay and benefits in the
near future, communication is still critically important. Here are a
few best practices for discussing compensation in a one-on-one
conversation or performance review:
* Speak openly and honestly with employees about how pay is
determined
* Show employees the breakdown of their total compensation
package
* Explain that their compensation goes beyond their paycheck, and that
you are investing in their well-being through health and retirement
benefits
An employee who is not completely satisfied with his or her current
paycheck might be surprised to see the total investment you are making.
Paycor’s Custom Web Reporting application
allows you to see total compensation for each employee, including wages,
benefits and taxes. The easy-to-read format makes it perfect for
sharing in the context of an open conversation with each employee
about his or her compensation package. See an example report
here.
When employees understand you value them, they are more likely to go the
extra mile for you. Being transparent about the investment you have
made in their total compensation is an easy way to show your
appreciation for their dedication and hard work. Contact
us to learn more about Paycor’s Custom
Web Reporting, and start reaping the bottom-line benefits of higher
engagement and retention.
Sources: Cornerstone OnDemand 2013 Employee Survey, The 7 Hidden
Reasons Employees Leave by Leigh Branham