Generally, C&B goal setting comes in four basic categories, such as:
- Guaranteed pay
- The Variable pay
- Benefits
- Equity-based compensation
Why is C&B Important?
No one would work for free – besides, it is illegal not to pay your employees, after all. Thus, compensation and benefits are part of the contract, considering your employees’ love for their jobs is not their reason to accept your offer.
You can say that the C&B document is a way to show your employees how seriously you are taking their job. According to a study, 63% of people accepted a job due to C&B factors. But how is it possible?
How does C&B Motivate the Employees?
The salary you offer might be part of the motivation. However, it is not the entire thing. You need to place a strategy so the candidate will prefer to take the job from your company.
It is also a way to retain a current worker. As long as you do it right, the C&B goal setting will contribute a lot to your company.
Bringing in top talents
Regardless of your objective, the presence of compensation and benefits helps to attract top talents. When you put something interesting and competitive on the paper, especially about better financial matters, top candidates will come along.
It is undeniably true if a person is always looking for a salary that could match his or her lifestyle. Thus, combining a competitive salary and worthy benefits altogether, it will be easier to find top candidates.
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Increase employee loyalty
Being paid is not enough, unfortunately. Your employees need to get paid well to keep them happy. Also, some appreciations and benefits will make them stay voluntarily.
Some experts suggested that a comprehensive C&B plan is a necessity. It helps the employees know how much you are invested in their well-being and future at your company.
Without some enticing benefits and proper compensation, it is most likely that your employees will hand in their two weeks’ notice. So, you better pay attention to how you strategize the goal setting.
Better productivity and profitability
It can be said that your company’s success depends on your employees, more or less. When they are productive, your company benefits from profitability. But how come?
When your employees get valued as human beings, coming to work will always feel more fun. The mood will light up their productivity while affecting your company’s profitability positively.
Determining Compensation and Benefits for Your Employees
Working as an HR professional may ask you to create a compensation-and-benefit plan. But how do you make a good one that suits your company and makes the employees happy?
Some points below may help you to create a C&B that suits your company.
- Check your company’s budget. Knowing the structure of your company’s budget helps a lot to understand how much you can spend.
- Review the compensation plans. You can do it quarterly, after all, no need to wait until the end of the year.
- Make a salary range. This process is useful when it comes to ensuring whether or not your company is on top of the competition.
- Regular compensation audits. At this point, you may review the worker salaries, incentives, bonuses, and other equity programs according to their performance.
In case those things above are too complicated for you, some compensation management software is on the market, which you can try. And this is anything you need to know about making a good yet competitive C&B goal setting.