According to SHRM, turnover rates have dropped in half since 2007, from 16% to 8%, with voluntary turnover dropping from 10% to 9%. To avoid the loss of top talent, companies are offering valued employees salary increases (49%), cash retention awards (32%), stock retention awards (26%), and higher bonus payouts (25%).
However, what do you do if your company doesn’t have the money to fund these types of efforts? There is only one answer brutal honesty. Open your books, let employees know what the real deal is, what your plans are for moving forward, and how they can profit from contributing to this growth. I believe that instead of throwing money at the situation, businesses should give employees the opportunity to produce outstanding results and get paid for their efforts. Here’s a formula that makes sense:
- Pay at least the average wage rate.
- Give employees incentives with team bonuses. Remember, a rising tide floats all boats.
- Create individual incentives. Remember the importance of frequency and high touch.
To learn more about compensation strategies, watch the Webinar we did on Straight Talk About Employee Pay with Chuck Czismar.