A good company will do its best to ensure its employees are compensated fairly and to the best of it’s ability. This sometimes requires a nuanced approach that goes beyond mere wage negotiation to encompass broader compensation strategies. Here are some common options an employer may offer to offset a lower-than-expected wage:
1. Enhanced Benefits: Instead of a steep increase in base salaries, companies can offer more comprehensive benefit packages. Health insurance, retirement plans, mental health support, and increased paid time off are all viable options that employers may choose to utilize.
2. Performance Bonuses: Linking part of the compensation to company performance can help motivate employees and align their own goals with the company’s. This allows the company to only pay if they reach a point where they can afford it, while also allowing employees to earn a competitive wage.
3. Flexible work arrangements: One of the most common post-COVID work perks that have been added to compensation packages around the globe is remote or hybrid work environments. Many people value a hybrid or remote environment over a slight salary increase. This is a great option as it doesn’t cost employers a thing and can help smaller businesses compete for top talent with larger organizations who can afford to pay more.
4. Professional Development: Investing in employee growth can be a great way to increase the overall compensation package without paying more directly to a salary. Opportunities for professional development should be viewed as an investment for your company, not a cost. Not only will it increase the skill set of your employees to help make more money for your organization it will also increase employee loyalty.
