Communicating Total Compensation to Attract Top Employees

Total Compensation: What It Takes to Attract Top Talent

Competition for talent is at an all-time high, and there’s no indication that it will slow down any time soon. An aging workforce, skills shortages and evolving technology are just some of the converging factors that are putting candidates and employees in the driver’s seat. The best companies know how to quickly attract and retain top talent. It's a huge competitive advantage, yet more than two-thirds of HR professionals readily acknowledge that they experience difficulty recruiting candidates.1

So, what does it take to recruit and retain the cream of the crop in today’s talent pool?

Competing in today’s job market means setting in motion a strong strategy that aims to develop a loyal workforce. There are many spokes on the strategy wheel, so as you look to build a more robust approach to talent management, consider these key components:   

Establish Your Baseline

Start by evaluating your strategy to establish a baseline.

How often do you analyze your workforce and benefit offerings? With increasingly diverse employee demographics, compliance requirements and more, it’s important to take time each year to examine the needs of your workforce. Knowing your workforce composition helps ensure that you design your benefits package to effectively address employees' needs. An enterprise benefits management platform can empower you with data insights that identify opportunities to enhance your value proposition as an employer.

You should also identify what your competitors offer. Does it match or exceed what your company offers? Knowing how your benefits stack up against your competitors helps you determine if your current approach is one that’s attractive to potential employees. It’s a key part of establishing the baseline, because it indicates where to focus your strategy.

Be sure to define your outcomes. What do you want to happen at your organization? Are you trying to attract younger employees? Do you want to set in place differentiators for top performers? Whatever the outcome, putting definition around the end goals will help ensure that your strategy is aligned.

Deliver a Competitive Package

Top companies know that a competitive benefits package is foundational to a strong talent management strategy. According to Unum’s Benefits Buyers Study, 78 percent of workers base their acceptance or rejection of a job offer in part on the benefits package. For those employees already established in a company, nearly half say that they would stay with their employer because they are satisfied with their benefits.2 On the flip side, job hopping is no longer a barrier to employment, so employees may be more apt to consider their options when they're presented with an enticing benefits package from another employer.

There is a link between employee satisfaction, attracting new talent and communication of benefits – the effectiveness of each is measured by your employees' perception of their total compensation packages. How are you helping employees understand their total compensations? Companies that understand the value of communicating total compensation include this messaging across many different areas of their business. For example, adding a list of benefits to the recruiting section of your company’s website can attract potential employees. New hire orientation is also a prime place to reinforce elements of your company’s benefits, development opportunities, and work-life balance or wellness opportunities. Additionally, leveraging your benefits platform can be another way to educate on total compensation. Through online communication tools, you can highlight new elements of the package, include language that features your values and culture, and provide easy access to employee benefit details.  

Communicate Your Brand Effectively

Selling your brand is key to recruiting and retaining top talent. Just like your company markets and sells its products and services, you should put the same time and resources behind selling your employee experience. The digital landscape makes it easy for today’s candidates to vet companies before they even get to your homepage. Candidates are using sites including Glassdoor and LinkedIn as evaluation tools to determine if a company’s brand is consistent with their values and whether they feel the culture would be a good fit.  

As a benefits professional, you're one of the company's key brand ambassadors and play a role in making sure your company's brand is communicated authentically. It’s more than your website or posters throughout the office. Your culture and brand should be weaved into all areas including company activities, social media and recognition programs. And involve your current employees. They're your best advocates. When your brand is authentic, your employees will be engaged and eager to participate in the effort to attract talent. 

Think Outside of the Traditional Box

What makes a good company great? One that keeps exploring new ways to engage its employees and think outside the box when it comes to building an engaged, high-performance workforce.

Great companies continually invest in their employees – fostering a culture of learning and providing opportunity for growth. Being attuned to the needs of your workforce creates engaged employees and attracts strong candidates. Have you noticed that employees are asking for more help with financial wellness? Offer onsite classes for your employees during work hours. It's an easy way to show you are listening to their needs.  

Consider generational differences. As your workforce evolves, re-evaluate your benefit offerings, development opportunities and fringe benefits. Millennials want to be connected to their workplace and are looking for volunteer opportunities through their workplace. It doesn’t mean a complete shift in your offerings, but making small adjustments to evolve your strategy.

Recruiting and retaining top talent in today’s market is not a strategy that’s rinse and repeat. Ultimately, it’s about continually reviewing your strategy and engaging the right talent to get them in faster and keep them satisfied.

Learn more about ways you can boost your talent attraction and retention efforts through an engaging benefits program. View the free, on-demand webinar, "Become an Employee Magnet," featuring guest speakers from SAP. 

1 The New Talent Landscape: Recruiting Difficulty and Skills Shortages (SHRM, 2016)2 Career Builder 2014 Job Satisfaction Survey