Is Your Pay Strategy Setting You Up for Success?
Do you want to positively impact your retention rates? Increase employee engagement? Gain a competitive advantage? Concerned about pay equity and legal compliance? Dream of building an outstanding company reputation?
If so, you're not alone, and there's a good reason for it.
Retention Rates: 63% of employees who leave their jobs cite inadequate compensation as the primary reason. The cost of replacing an employee can be staggering, often amounting to 6 to 9 months' worth of their salary due to recruitment, training, and lost productivity.
Employee Engagement: Companies with strong employee engagement report 21% higher profitability. A significant factor in this success? Fair and competitive pay. In fact, organizations with fair compensation practices experience 41% lower absenteeism and 24% lower turnover.
Attracting Top Talent: 62% of job seekers list salary as the top factor when applying for a job. Companies offering competitive salaries and benefits are 60% more likely to attract top talent.
Pay Equity and Legal Compliance: The gender pay gap costs U.S. companies an estimated $512 billion annually due to legal challenges and turnover. Ensuring pay equity not only reduces legal risks but also bolsters company reputation. The U.S. Equal Employment Opportunity Commission (EEOC) handles over 25,000 pay discrimination claims annually.
Company Reputation: 86% of employees and job seekers say salary transparency is crucial, and companies that fail to provide fair compensation often struggle to maintain a positive brand reputation. 77% of job seekers consider a company's salary offerings when evaluating job opportunities.
How confident are you in your pay strategy?
If your answer is "not very," you're not alone.
Fortunately, we're here to help. At Salt & Light Advisors, we are obsessed with analyzing compensation data and providing you with a clear path forward. Our approach is thorough, data-driven, and judgment-free. Let's work together to create a compensation strategy that drives retention, engagement, and long-term success for your organization.
