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If pay is not able to be competitive with the market, there needs to be additional strategy of other creative offerings that matter to the group of employees. For example, offering more flexible work options or increased benefits such as more PTO. One innovative and cost-effective way to do this is offer what is known as VTO (Voluntary Time Off). The way this can work is an employee can elect to take up to one more week off in the year but forfeits the pay (a small % each week) that is taken out in account for the extra week of PTO. This can be meaningful to many employees, but they still keep their regular paycheck and do not have to go without pay those days.
In addition to this, many employees (especially the highest performers), are not just looking at their current salary but also increased responsibility and the potential of development and salary growth in the coming years. It is important that organizations can communicate a path forward as well as offer career development opportunities to achieve this. This does not have to cost a lot but can even include offerings such things as a mentor program, career development focused lunch and learns, leadership book study group to name a few.
By providing fair pay, flexibility and a strong development culture a company will be well on their way to continuously engaging and retraining their talent!
Author: Erika Butler