30-50 %
5. Create a Compensation Communication Plan
This is the final step in your compensation strategy. The good news is this can easily be integrated into the compensation planning process you have in place. The bad news: you just became a sales person. Let me explain.
Compensation is a powerful tool for attracting and retaining top talent. Most employees assume their compensation is comprised of their base pay plus any additional bonus they may or may not receive. They often forget – or perhaps aren’ t told – that almost 30 to 50 percent of their entire compensation is from other areas.
So part of your compensation strategy is to sell the employee on his / her total compensation package. It’ s OK if you don’ t want to look at it as selling— think of it as communicating. Either way, if healthcare organizations are not clearly articulating, communicating, and explaining( and yes, selling) the total value of employment to their employees, they are losing valuable talent unnecessarily!
Here are some simple ways you can integrate a compensation communication process into your strategy:
30-50 %
1. Compensation Management – Have a system in place that provides a clear and transparent process so employees can see how they are paid. Make it easy on managers to extract compensation data for their staff to avoid confusion and frustration. Quick and easy answers mean more engaged employees.
2. Total Rewards Communication – Create( at a minimum) an annual total rewards statement that summarizes the total value of employment. This can outline the direct or indirect value of many of the items shown in our list above providing a more tangible value to their employment. Even better, implement a total rewards portal that allows employees real-time online access to this data 24 / 7. This is particularly helpful for those using a pay-for-performance model or for retaining employees with stock.
3. Walk Away Value – Create a tool that can easily show the potential lost value of employment if an employee were to leave. This can include loss of future wage increases, bonuses, stock options, benefits, and more.
It’ s not enough to just pay employees, we have to literally show them the money. Leverage your compensation strategy and communicate the full value of employment with your organization.
30 TO 50 PERCENT OF EMPLOYEES ENTIRE COMPENSATION IS FROM OTHER AREAS, SUCH AS:
• Profit sharing or 401k
• Retirement / pension plans
• Stock or equity
• Benefits
• Bonuses and incentives
• Rewards and recognition
• Personal time off and vacation
• Opportunity income, such as professional development programs, tuition reimbursement, etc.
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