How much do you pay your employees? Do you pay the industry average? Do you pay them as much as your competitors?
Paying your employees more than the industry average can be a significant competitive advantage. Here are 5 benefits of paying your team above average salaries:
1. Attract and Retain the Best Talent
There is only so much top tier talent out there. If you want a chance to attract and retain them, you need to compensate them well. Compensation could be the deciding factor for a candidate choosing to work for you over a competitor. You’ll lose a lot more money on recruiting costs if you continually need to find or replace talent who leave your company over compensation issues.
2. More Top Talent Will Want to Work for Your Company
Paying above average salaries will make people want to work. It will help improve your company’s employer brand and your perception among industry professionals. Your current employees will also be more likely to refer to other professionals.
3. Better Performance
If you pay your employees better than average, you can also have higher expectations. You can expect to get more out of your team. Employees who feel they are paid well will also be more motivated to perform better. It gives them an incentive to do more and go above and beyond when needed. Remember, your employees are not going to be as efficient if they are not happy and spending time looking for another job.
4. Employees Will Stick Around Longer
Compensation is a common reason for employees to leave. If you eliminate compensation from the equation and have a strong company culture, people will be less likely to leave. You’ll improve your retention rates and have a stronger team of experienced and seasoned workers.
5. Smaller But More Efficient Team
A well-compensated team tends to be more efficient. When your company operates efficiently, you will need fewer people to do the job. While the exact numbers will vary from company to company, you could actually lower your overall salary costs by paying a select group of top talent more than the industry average.
Read More About the Impact of Salary on Recruiting
Get more in-depth recruiting tips and advice from our experienced headhunters. Check out these blog posts related to salary and compensation:
IQ PARTNERS is an Executive Search & Recruitment firm supporting clients across the country. We help companies hire better, hire less & retain more. We have specialist teams of recruiters in Executive Search / Board & C-Suite, Technology, Media, Digital & Marketing, Accounting & Finance, Financial Services & Insurance, Cannabis, Startup, Data Science, Consumer, eCommerce & Retail, Operations & HR, Manufacturing, Supply Chain & Engineering, Legal & Professional Services, Pharmaceutical & Life Sciences, Non-Profit & Sustainability, and Sales. IQ PARTNERS has its head office in Toronto and operates internationally via Aravati Global Search Network. Click here to view current job openings and to register with us.