For most employers, the pay and benefits provided to their employees is the largest expense. So, it makes sense that they spend a good amount of time making decisions about pay and benefits.
But some employers don’t. They have few pay decision making processes defined and don’t have grades, base pay ranges, or incentive targets defined for their jobs.
They have a haphazard mess of reward decisions that are based on “who asked for what” or favoritism and aren’t defendable.
With five more U.S. states having pay transparency laws going into effect in 2025, the compliance challenge keeps increasing for employers.
If you are a small company wanting to scale and become bigger, or if you are an employer with a limited budget be sure to prioritize your approach to designing rewards and delivering them to employees.
Just like you invest in other assets be sure to invest in your team members. Employees show up each day and do the work they are assigned because they get a paycheck and benefits. They might also like who they work with and the culture at their workplace. Or not.
Sometimes coworkers and company cultures are awful and aren’t helping you retain or attract the talent you need to meet your goals. That means you should invest in your managers by ensuring they know what behaviors are expected and which aren’t.
You get what you tolerate so don’t put off difficult conversations. The longer you wait to have the talk, the worse it is for everyone.
Getting pay right is essential. Getting benefits aligned to employee expectations and your local market is also necessary.
But the icing on the cake is having employees who like to come to work and that means that you need effective managers who know how to create and sustain a healthy workplace.
Get pay and benefits right but don’t take a short cut and ignore the managers who are creating the culture with their day-to-day interactions. That’s the secret to success. Or maybe it isn’t a secret but is the most difficult type of reward to influence and get right.
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