Total Rewards: How to Find Compensation Strategies that Work

Raise your Company’s Engagement Index: Compensation Strategies That Work!

In today’s rapidly evolving employment market, it is imperative for organizations to place a strong emphasis on their compensation and benefits offerings to engage their existing workforce and attract prospective candidates effectively. Recent research conducted by the Society of Human Resources has highlighted the undeniable influence of compensation as a key determinant of job satisfaction among employees. A comprehensive and competitive package has a direct correlation with higher rates of employee retention and improved productivity. By minimizing turnover and fostering an environment of enhanced morale, productivity, employee satisfaction, and organizational culture, companies can optimize their financial resources and cultivate a more positive and flourishing work environment. So, what are the necessary steps that can help you raise your organization’s engagement index?

Find out what your employees want

Finding out what your employees prioritize will also help determine if your organization is in line with what employees are looking for to better capitalize on the funds utilized for compensation and remain competitive.

One method of determining your employees’ wants and needs is to distribute surveys among a wide variety of staff members. Alternatively, employers could coordinate interviews of focus groups to facilitate open discussion.

During this process, question what your employees’ value and account for variations based on different groups and demographics.

Do an Inventory of the latest Compensation Trends

Studies show job candidates and employees look for a key component: the compensation and benefits package.  In addition, several aspects that affect compensation can change over time, such as the size, revenue, or location of an organization or each employee’s role. Therefore, organizations must regularly review compensation and benefits to retain and attract employees. As you review the latest trends, highlight your comp and benefits program under a total rewards strategy. Employees may overlook the value of total rewards programs if they are not presented within the framework of a comprehensive total rewards strategy.

Leverage The Value of Your Employee Benefits

It is important to help employees better understand what benefits are offered to them in order to avoid dissatisfaction due to pay.  Once employees clearly understand their total compensation package, they will most likely focus on all the compensation and benefits offered. Remember, 40% of your labor costs are associated with your benefits package. The cost includes not only medical benefits but all employee insurance programs, time-off, pension, and mandated employer-related taxes

Develop A Strategy that blends your organization’s Culture and Value

Once recommendations have been accounted for, account for your organization’s values and pay philosophy.  Also, account for the return on investment and how changes could address attraction and retention.  Be prepared to act or explain why such benefits are or will not be offered.

Flexible Solutions

To stay relevant and reach a widescale workforce, it is recommended that your organization offers flexible benefits that are customizable to your workforce. For example, there are a lot of different options to choose from when it comes to selecting a benefits package.  Some options include health insurance, paid leave, retirement benefits, flexible scheduling, or tuition reimbursement.  Also, flexible work arrangements are highly priced by employees: They offer the flexibility and cost-saving options often sought by employees.

Top Performer Benefits

Lastly, consider adjusting your compensation strategy for top performers and those that exceed expectations to further incentive good behavior and increase attraction and retention.  Consider offering additional pay or an employee bonus. Employees are more likely to apply or stay at an organization that invests in their performance.

In conclusion, adopting a systematic approach to developing an engaged workforce can yield numerous benefits for companies. By implementing a well-defined process, organizations can create a culture of employee engagement that enhances productivity, fosters loyalty, and drives innovation. This process involves understanding employees’ unique needs and aspirations, aligning goals and values, providing regular feedback and recognition, promoting professional growth opportunities, and fostering a positive work environment. Investing in employee engagement improves job satisfaction and retention rates and directly impacts the company’s bottom line, as engaged employees are more committed, motivated, and willing to go the extra mile. By prioritizing the development of an engaged workforce, companies can position themselves for long-term success in today’s competitive business landscape.

10/15/2022

Pay Transparency Requirements in WA and CA

Resources to Comply with California and Washington Pay Transparency Requirements

Starting January 1st, 2023, CA and WA employers must comply with a series of measures designed to address pay comparability in the workplace. Blue Whale has prepared the following articles and guidelines to help employers better understand their obligations. For additional support, contact us today for a free, 30-minute consultation.

ACCESS: Blue Whale’s Guide for CA Employers

Our 2022 guide contains tips, regulations, and the latest information on Pay Transparency and the Fair Pay Act.

Covered Topics:

  • Fair Pay Act – Background
  • Proving Unfair Pay; Justification for Pay Gap Differences
  • Pay Transparency For Pay Equity Act, Senate Bill 1162
  • Posting Requirements
  • Data Reporting
  • Employer Resources
  • and more . . .

ACCESS: Washington Guide for Employers

Guide on the latest information on Pay Transparency Job Posting Requirements, WA

Covered Topics:

  • Employee Job Applicant Rights
  • Equal Pay, Definition and Guidelines
  • Career Advancement Opportunities
  • Open Wage Discussions
  • Pay Transparency Requirements
  • Employer Resources
  • and more . . .

CA Pay Transparency 2023 Legislation: The First 30 Days

After reviewing the first 30 days since 2023 pay transparency laws have gone into effect for California, Washington, and Rhode Island, we have put together an article to provide an overview of requirements for new pay transparency legislation and key findings for how companies have been interpreting and adapting to this legislation in the new year.


CA Transparency Requirements – Senate Bill 1162

Beginning on January 1st, 2023, if your organization has 15 or more employees, you must include the salary range within your job postings and provide the pay scale to your current employees upon request. In addition, your organization must record your employees’ job titles and wage history during employment and for three years post-termination.

Beginning on May 10th, 2023, if your organization has 100 or more employees, you will be required to report to the Civil Rights Department annually the median and mean hourly rate for each of your organization’s job categories broken down by race, ethnicity, and sex. 

Penalties

Your organization must comply with California’s Pay Transparency Requirements or risk civil penalties of up to $10,000 per violation. *No penalty will apply for a first violation of the job posting requirement if your organization can show that all job postings for open positions have been updated to include the pay scale.

Your organization will face up to a $100 fine per employee if your organization fails to file the required reports. For subsequent failures, your organization may face a civil penalty of up to $200 per employee.

Reporting Requirements, California

Blue Whale Compensation can help your organization update its compensation structure and policy to manage compliance obligations.  In addition, we can help organizations with SB 1162’s reporting requirements.

Contact us today to schedule a free, 30-minute consultation.

Need a plan that satisfies Pay Transparency Requirements? Check Blue Whale’s Integrated Comp

Blue Whale’s Integrated Comp Plan includes the tools to best manage pay equity and compliance obligations under SB 1162 and SB 358, and Washinton’s new pay transparency requirements. It includes training, policy manuals, and implementation support. We recommend this to who are subject to Fair Pay and Transparency Requirements and to companies who wish to embrace their social responsibility towards equitable pay.

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