Motivate And Retain Your Employees
How To Motivate And Retain Your Employees With Competitive Pay
Attracting employees is one thing; motivating and retaining them is quite another. Most workers move on from businesses sooner than you’d like, all thanks to sub-par pay and conditions. This post is meant as a primer. We discuss how you can leverage competitive pay to improve productivity and reduce staff churn. While much of what we discuss will be simple, you’d be surprised how few businesses implement these ideas.
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What Is Competitive Pay?
Competitive pay is the amount of money you need to offer talented employees to encourage them to remain in your organization long-term. Most economists would define it as being slightly more than the going market rate – a way to outbid the competition. Let’s say, for instance, that the market rate for a data analyst is $20 per hour. A company that pays $25 per hour is entering the market above the general rate to secure additional benefits, such as reducing turnover. Employees in highly paid positions are less likely to move on, just in case they lose the wage premium they get from their current employer. Competitive pay can also include benefits and perks. Staff, for instance, are more likely to stay with a firm that offers flexible working hours and plenty of time off at the weekend or remote work.