As employees demand higher pay, HR leaders are stressing about recreating their compensation frameworks with a limited budget and data on inflation. Read on for expert insights from real HR leaders from our Brain Trust events on how to tackle this issue.
Developing a Compensation Framework with Limited Available Research on Inflation
Here are five ways HR VPs are revisiting compensation with limited data.
1. Develop closer internal relationships
Having a tight-knit relationship with your HR team—above and below—is critical for understanding the labor market and their needs, plus learning how to convince upper management that these compensation changes are necessary for the growth of the business. Meet with your recruiters. Ask them what people are looking for and why they reject your offers. Have your HRIS folks dig into the issue for you, too.
2. Document why people stay and why they leave
Ask recruiters to dig deeper. If you aren't already, have recruiters reach out to employees that left the company a while back or recently rejected your job offers. Ask them why they left for other opportunities, and document this where the entire HR team can access it. Survey your company and ask them why they are staying and what would make your company more attractive to them.
3. Ask staffing agencies to give you a going rate for open roles
Chances are, you've had a staffing agency reach out to you recently. Instead of ignoring them, ask them to send you a going rate for open roles and a write-up of how much they will charge you. This is an excellent data-gathering approach and can help you gauge the labor landscape quickly.
4. Use the Economic Research Institute website as a reference
Erieri.com is a great place to get quarterly updates on going rates for roles.
5. Revisit other retention strategies
It's not all about compensation! Employees value other things, like:
- Flexibility
- Recognition programs
- Child care
- Generous PTO
- Tech reimbursement
- Fully paid health insurance
- Bonuses
- Mental health programs and onsite massage services
For more tips for HR leaders, check out these blog posts:
- Building a Culture of Feedback, Not Just An Effective Employee Review Process
- 3 Essential Keys to Writing an Effective Employee Handbook
- How HR Leaders Can Help Employees With Self-Care
- Top 5 Considerations for Open Enrollment Season
This blog post was inspired by a conversation with real HR executives at our HR Brain Trust. You can watch the conversation below.
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