In today’s American workforce, job migration has become the norm. According to the Harvard Business Review, the average monthly quit rate has been rising steadily since 2009, reaching a fevered pitch during the “Great Resignation” of 2021.

For many employers, the path forward has included an evolving employee compensation strategy to retain their top talent.

As you develop next year’s budget, consider these tips to keep your employees fully engaged.

Offer Relevant Pay Raises

As a general rule, 3% pay raises are the norm. But what actually matters is whether your employees know this. For some, a 3% raise may seem low and prompt them to look elsewhere for greater employee compensation.

If you communicate this fact often, your employees may better understand what’s considered “fair” and be less likely to jump ship.

The 3% norm also means that if you can offer a pay raise beyond that minimum, you’ll be ahead of the competition. Your employees may be more likely to stick around to allow their pay to climb steadily with every annual increase.

Keep Your Employee Compensation Consistent Between Old and New Hires

Some companies make the mistake of investing too much in new hires. In an effort to attract new talent, employers offer generous compensation packages and employee benefits. In some cases, these compensation packages are as much as — if not more than — the salary paid to loyal employees.

When long-term employees catch wind of this, it can be difficult not to take it personally. After all, it’s only natural to expect loyalty to be rewarded. Otherwise, your top employees might be tempted to take their talents elsewhere.

In other words, bet on your loyal team members. Make sure that their compensation reflects their years of service. When employees feel valued, they are more engaged and display continued loyalty to your company.

Offer a Clear Path to Advancement

One of the reasons employees might be tempted to leave is that they don’t want to get stuck in a “dead-end job.” But offering a clear path to advancement (as well as the salary and benefits that come with it) can provide an incentive for workers to remain with your company for the long term.

Whenever possible, offer professional development opportunities that provide your workers with additional skills or training. Employees appreciate having access to these opportunities, which make for an energized work environment and provide an advantage over rival companies.

Practice Transparency Regarding Employee Compensation

Historically, many companies have discouraged employees from sharing information about their compensation. But this has often led to the assumption that the company is hiding unfair compensation practices.

If employees believe that their work is not equitably compensated, it can fuel the desire to seek employment elsewhere. Introducing transparency into your compensation efforts can help employees understand that they are being treated fairly and reduce the temptation to leave.

Offer Wellness Programs as Part of Your Employee Benefits

For many Americans, mental health and wellness are important factors. Employers are retaining top employees by evolving their employee benefits package to offer mental health care, wellness programs, and more.

Beyond mental health, other companies are offering benefits that center on personal wellness, such as programs that promote diet, nutrition, and exercise. These holistic benefits can give your company a competitive edge and remind your workers that they are cared for.

Keeping your employees happy and healthy overall can help them stay engaged in the workplace and increase the likelihood that they’ll remain with your company.

Provide Other Non-Financial Employee Benefits

While health insurance and retirement benefits are the norm, many employers are offering non-financial benefits to retain star talent. These benefits can include things like:

  • The option to work from home for at least part of the week
  • Extended vacation time and paid time off (PTO)
  • Social events/work outings
  • Community outreach events (e.g., fundraisers)
  • Childcare opportunities

All of these employee benefits can improve morale and help give your workers a place where they feel valued.

Evolve Your Benefits

As an employer, you have an opportunity to create an unforgettable workplace culture. Benefits Advisory Group can help. Contact us today to discuss strategies for evolving your compensation strategy and keeping your employees happy and engaged for years to come.