Ways to retain a good specialist if a competitor offers a higher salary

The success of an organization is determined by the level of its employees’ competence, motivation, and performance. Therefore, it is especially important to retain good specialists within the organization. However, this task can sometimes be complicated. One of the pitfalls of retaining a good specialist is the inability to give employees a raise when competitors offer much higher salaries for the same kind of work. In this case, keeping an excellent employee may seem nearly impossible. Believe it or not, if employers can create the right conditions and a healthy atmosphere in the office, there is a chance that highly valuable employees will want to stay, regardless of how much they could earn at competing firms.
Of course, giving your employees the desired level of pay raise is the best option for retaining them in the company. To achieve this, your human resource specialists need to conduct competitive research, analyze the sums required to lead a healthy lifestyle, and create a pay raise system. If the company is not ready to meet this pay raise challenge or does not have sufficient funds to offer higher salaries, it is better to use the following strategies to retain good specialists

1. Creating winning compensation programs

Compensation is not solely about higher wages. The compensation philosophy of a company defines the reward strategies that support employees in various ways, making their lives easier or more pleasant. This philosophy should align with the organization’s core values, business strategy, objectives, mission, and available funds. A well-thought-out compensation philosophy not only helps retain existing employees but also attracts new talented candidates to the company. For current employees, this program will help keep them engaged and motivate them to perform at their best. Additionally, compensation programs can be based on employees’ performance, thereby rewarding high-performing professionals with special benefits and incentives.
Compensation and benefits can include various services that employees receive by working with you: corporate trips, foreign language lessons, massage sessions, gym membership compensation, yoga at the office, and more. These benefits will make your employees’ lives healthier and happier, which will undoubtedly enhance their overall job satisfaction.

While employers need to invest some money to provide these benefits, they may be able to secure significant discounts through collaboration opportunities or bulk purchasing Additionally, employees highly appreciate a company’s social responsibility. It’s beneficial to consider offering generous vacation time (possibly unlimited), flexible schedules, the option to bring pets to the office, shared car or bus transfers to and from the office, and more. Employees should feel that their employer genuinely cares about their well-being

2. Intangible Rewards

Although all the mentioned compensation and benefits are quite tangible, there are also intangible rewards such as recognition, appreciation, work-life balance, and personal and professional development, to name just a few. In fact, intangible rewards may be even more important than tangible ones. Would an employee with adequate self-esteem stay in a company where they don’t feel any respect or recognition? With rare exceptions, the answer is likely to be negative. Therefore, ensure that you provide every employee with intangible rewards as well. Here are a few tips to make employees feel appreciated in their workplaces

  • Don’t forget to thank your employees.

While it is sometimes impossible to say the exact phrase “thank you” to employees, there are various other ways to express your appreciation and recognition. An old-fashioned method is creating a wall of fame where everyone can see the photos of top-performing employees. Another way to demonstrate appreciation is by using sticky notes with praise or simply offering verbal recognition regularly. If possible, employers can also reserve the best parking spots for the best-performing employees. All these practices foster a sense of comfort and recognition among employees. Additionally, it can be beneficial to provide top employees with tangible rewards such as concert or cinema tickets, free meals, or casual dress code days

  • Promote a work-life balance among employees.

Not all employees have a built-in sense of the importance of maintaining a work-life balance. While you may benefit from employees who work overtime and prioritize work over their personal lives, over time, these workaholics might start to feel burned out. Therefore, the HR department needs to emphasize the importance of balancing work with other aspects of life, especially health. Although work is crucial, all career prospects lose their significance without maintaining a balanced, healthy lifestyle.

Employees often receive more constructive criticism and directions on improving their tasks. Therefore, giving verbal recognition is essential to making employees feel acknowledged. It is important to mention not only minor areas for improvement but also the overall contribution they have made to the current project.

3. Promoting a healthy and friendly working environment

It’s not always easy to leave a job when the atmosphere is friendly and supportive. Ensure that you cultivate an easy-going, relaxing, and friendly atmosphere in the office through team-building activities, corporate psychological workshops, corporate parties, or events.

Furthermore, take an interest in getting to know your employees: their personality types, specific traits, hobbies, and marital status. Understanding your employees as both staff and unique individuals can boost performance and create a healthy working environment. Therefore, it’s necessary not only to instruct your specialists and encourage hard work but also to find time to get to know them better and allow them to build friendships.

Another aspect of creating a healthy working environment is encouraging breaks among employees. It’s essential to ensure that employees understand they have the right to take a pause, catch their breath, and then return to work feeling refreshed. This practice reduces stress, minimizes tension, fosters trust, and helps employees be more productive.

4. Create the bigger picture: make your employees part of the company mission.

Demonstrating to employees that they are part of a bigger picture can yield several positive outcomes:

  • First, employees become more aware of their contributions to the project and how the company positively impacts the world.
  • Second, employees are motivated to perform efficiently and are more inclined to collaborate with coworkers in a peaceful and understanding manner.
  • Third, being integral to the company’s goal achievement makes specialists feel appreciated.

Therefore, it’s crucial to make the company’s values, mission, project milestones, and strategic goals crystal clear for your employees. This clarity helps specialists boost productivity while working as a team and ensures alignment with the defined direction.

5. Creating conditions for development.

Successful achievement follows professional development and active training. To achieve the best results, specialists must be prepared to excel in their work by acquiring all necessary skills, knowledge, and information about industry trends.

If you’re hesitant about investing large sums of money in your employees’ development, put your doubts aside. Creating conditions for improving professional skills doesn’t always require expensive training sessions and costly conferences. It’s possible to find creative and imaginative methods to train staff on a budget. For example, you can send one specialist to a specific course, and then have them train their coworkers. This method is quite efficient since we often learn better when teaching others.

Another option is to offer free or inexpensive online courses, informal lunch-and-learn events, brainstorming sessions, or even intellectual games. Remember, where there’s a problem, there’s a solution. So, continue training and developing your employees in any situation. As a result, they will be more inclined to stay in a place where they can grow both personally and professionally, learning something new and exciting.

6. Providing regular feedback and evaluation

Updating employees on their performance helps them feel they are growing and capable of working even better. Concentrate on the positive moments and show appreciation. When addressing flaws and imperfections, avoid scolding them. Instead, offer recommendations and express your expectations in the form of challenges, goals, or guidance from mentors. Remember, the sense of progress and recognition are crucial factors in retaining workers in a particular position or enterprise.

At the same time, ensure that feedback and evaluation are mutual. One-sided evaluation is simply not fair. Therefore, communicate with your employees about their expectations, satisfaction, and future goals. If you believe they may feel uncomfortable doing so, consider using anonymous Google Forms or other online platforms to create polls.

7. Corporate parties: have time out of the office

It’s no secret that a rich corporate life fosters a sense of unity, friendship, cooperation, and dynamism. Corporate parties can bond coworkers together, making it difficult for them to leave their current company. Hosting a party can also boost employees’ confidence, motivation, provide a change of scenery, and bring a sense of freshness.

However, it’s not necessary to limit bonding activities to corporate parties. In fact, looking beyond standard team-building entertainment can yield feel-good triggers. For instance, encouraging the team to participate in charity events can boost team spirit and self-worth, as employees contribute to improving the world and doing something valuable.

Another option is in-office activities such as games or cinema nights, pizza Fridays, or celebrating special occasions like Halloween, New Year, or birthdays. Therefore, ensure you incorporate team-building activities unrelated to work. This element will help employees build stronger bonds and a more cohesive team.

8. Conduct a pay analysis

It’s possible that you may overestimate the conditions your competitors offer. In any case, conducting a competitive analysis and comparing your company to others in your market can be beneficial. Review salary reports of your competitors and the average salary rates on job websites. Additionally, it’s useful to prepare potential answers to questions your employees may have about why your company pays less than others.

As we can see, retaining key talents is an art that defines the scope and quality of your business, as well as the position of your enterprise and its market value. It’s not just the salary amount that influences workers’ desire to stay or leave their jobs. A good working atmosphere, enjoyable gatherings, and opportunities for professional development are the main factors that encourage your best employees to stick around.

The article is authored by Shivanand K Patil , National Recruitment Head-Temp Staffing at Spectrum Talent Management

Spectrum Talent Management® offers comprehensive HR solutions, including CXO hiring, RPO, IT staffing, recruitment, and engineering staffing, to help organizations find and retain top talent efficiently.

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