Knowing whether or not your compensation stacks up in today's increasingly competitive job market can go a long way toward retaining your best workers.
One-quarter of businesses have lost a good employee in the past year to a job that paid more, according to a new study from the staffing firm Robert Half.
Unlike the past several years, highly skilled professionals have more options in the current hiring environment, said Paul McDonald, senior executive director for Robert Half.
"To attract and retain employees, businesses must proactively benchmark salaries and ensure they are offering competitive pay," McDonald said in a statement. "If a manager can't recall the last time wages were evaluated, it's probably been too long." [Are You a Success? Workers Reveal Salary Tipping Point ]
In order to make sure you're paying your employees enough, Robert Half offers several tips:
- Conduct research: Review industry reports that detail compensation levels for various jobs. Regularly checking these resources helps ensure you're paying employees competitively.
- Ask recruiters: As part of their jobs, recruiters make sure they're up to date on the current job market, and can help inform you of the going rates for salaries and benefits.
- Take surveys: Don't just focus on what those outside of your company think. Be sure to periodically ask your current employees if they feel their salaries and benefits meet their needs. Knowing what's most important to them will help you shape your company's offerings.
- Don't just focus on money: Not all employers can afford to give out raises. Nonmonetary benefits, like flexible schedules, remote-work options and extra paid time off, can help boost employee happiness.
"Many organizations understand the value of offering attractive salaries and have already taken steps to ensure their compensation remains competitive," McDonald said. "However, for others, it may just be a matter of time before a key employee walks out the door for more money."
The study was based on surveys of more than 2,200 chief financial officers at companies in more than 20 of the largest U.S. markets.