The determining factor between the success or failure of your organization will come down to how well you as a leader implement the 8 levers of employee engagement. Last week, we talked about the first two levers, Senior Leadership and Direct Managers. This week, we continue our deep dive into the Corporate Leadership Council’s study on employee engagement by looking at the importance of Compensation and Benefits.
According to the Corporate Leadership Council, compensation is the single most influential factor in both hiring and retaining employees. In fact, a study from the CLC shows that an associate’s satisfaction with their overall compensation package increases their likelihood to stay with an organization by 21.1%. Good leaders know they need to offer fair and competitive compensation in order to fully engage their associates.
While many companies have strong compensation packages for experienced employees, they often overlook the importance of competitive pay for rookies. However, leaders who want their new LO’s to be successful quickly offer better packages out of the gate as an incentive for performance. When a rookie knows they have a greater earning potential from the start of their career, they are more likely to increase their efforts to grow business!
In a difficult market, leaders could be tempted to choose a benefits package solely based on cost instead of quality. However, the benefits you offer your associates clearly communicate your level of care. This will be reciprocated in the effort employees put toward their performance. Greater care equals greater production!
At XINNIX, leaders approach the subject of benefits with this question: “How can we stay profitable and fiscally responsible while still investing in the most aggressive benefits plan we can find?” After all, benefits are truly an investment in our employees. If we take care of them, they take care of the customers. As always, putting our associates first yields the greatest results for our business.
Check back next week to learn about the next two levers of engagement!