From the pages of In Business magazine.
Have you ever wondered how the “employment experience” at your company stacks up? Well, if you’re still wondering, you’re probably behind the times because in the age of social media, word travels fast, and any employer who focuses solely on tangible things like compensation and benefits is missing the intangible possibilities that can give them an edge.
So says Summer Rector, chief operating officer for the QTI Group. One of her specialties is Total Rewards programs that can make the difference in keeping the keepers and perhaps recruiting some, too. “From workplace culture to career-development opportunities and the quality of the workplace environment, those types of pieces are important in this competitive labor market,” she notes.
One intangible that’s actually tied to a tangible is pay transparency. In addition to communicating and documenting Total Rewards for new and existing employees, one proven engagement strategy is to promote more transparent pay practices. In fact, research has shown a fair and transparent pay process actually boosts employee engagement more than additional pay. “If employers can help employees understand the how and why behind the pay decisions,” Rector notes, “they are going to increase employee engagement, and that’s going to lead to better company results.”
The Total Rewards concept is fairly well known, but the idea of transparent pay practices has only recently gained some traction. On the surface, it would appear to fly in the face of the long-standing practice of keeping pay information confidential, and while that’s still a smart practice in terms of what you pay, there is nothing wrong with explaining how such decisions are made.
“The research into fair and transparent pay practices has been performed by a variety of organizations, including PayScale,” Rector notes in reference to the Seattle-based compensation software and data company. “They have done a lot of research on this, including a recent study of over 500,000 employees. So, it’s gaining traction within the marketplace.”
While it’s important to remain competitive with regard to compensation and benefits, it’s also wise to differentiate yourself with the intangibles. By that, we’re not only talking about offering unique, low-cost benefits gleaned from surveying your employees about their preferences, but also regularly communicating Total Rewards components to workers and training managers to have those transparent pay conversations with them. “This is going to help to maximize the return,” Rector says, “on your Total Rewards investment.”
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