Engineering, manufacturing, R&D, and IT — all of these technical industries are growing fast. Employees are in demand and they know it. How can your business attract and retain the top talent in the industry when everyone is competing for their time? It may take getting a little inventive with your compensation packages.
The Modern Workforce Doesn’t Want More Money
Millennials are soon to make up the bulk of the workforce and they aren’t interested in money. While a good salary is a good salary, millennials are prioritizing their work-life balance over cold, hard cash. The modern workforce is primarily interested in the following benefits:
- Being able to work from home. Remote work and flexible hours are seen as being highly desirable, especially in fields like IT in which employees can be expected to work well over 40 hours a week.
- Being able to grow as an employee. Today’s employee wants to be on a constant upwards trajectory, growing their skills and developing themselves out professionally. If they don’t feel encouraged and inspired, they may look elsewhere.
- Being able to connect to the company’s culture. Millennials are putting n increasing emphasis on connecting with a company’s goals and ethics. Many are looking for companies that align morally with themselves.
That isn’t to say salary and other financial benefits aren’t important, because they are. Though the modern workforce may not be emphasizing the importance of this during hiring, it becomes relevant during their work. A financially healthy employee is a productive one. Employees who need to worry about their next payday will be distracted — and potentially flighty.
Developing an Effective Compensation Strategy
With the above in mind, an effective compensation strategy today involves motivation. Regardless of base pay and benefits, employees need to know that there is something that they are working towards, such as an internal promotion. Employees must be able to see their progress and feel that they are valued.
Developing strong salary ranges, keeping these ranges exposed, and being transparent about how employees can achieve these different salary ranges is a first step towards a solid compensation strategy. From there, frequent audits can keep employees working towards improving themselves and improving their benefits, whether those benefits are related to flexible time or additional pay.
A comprehensive performance management system can make this process more transparent and make it easier for employees to see how they’re doing. In essence, this can bring gratification to the employee development process, helping them to move towards their own goals while also improving the company’s own retention.
When creating a compensation strategy for technical talent, it’s important to understand what today’s employee is looking for. Employees want to have a clear developmental trajectory, in addition to flexibility and work-life balance. If you can provide this, you can create a compensation strategy that is both effective and cost-effective.
Please contact us if you’d like a personalized tech staffing solution for your company.