Chances are, one of the first things you did as you were planning your business is to draft your Mission, Vision, and Values. These are the guiding principles of your company, right? But, did you take time to create a formal compensation plan which aligns with your guiding principles?
Having a formal compensation plan can help with recruitment, organization, retention, and overall financial planning. It is an integral and important part of your business strategy. But, if it doesn’t align with your Mission, Vision, and Values (MVV), then it may not work for you. Here are a few things to consider.
ARE YOU THE INDUSTRY LEADER? If you position your company as a leader in your industry, it implies that you will have top talent. Your recruitment efforts should match this value through comprehensive job descriptions with generous compensation packages. You cannot ask for the best without seeking the best and working to afford the best. If you can’t afford to pay all of your employees at the upper percentage of industry compensation standards, consider doing so with the top leaders and, for general staffing, seek top graduates to add to your pool of candidates. This can be a more affordable, yet effective approach
ARE YOU THE INDUSTRY COMPETITIOR? If your MVV brands your company as an industry competitor, this may imply that you are seeking a good range of talent to support the organization. You’ll have flexibility to develop a compensation plan with salaries within the median range of the market, and to selectively search for top talent in niche roles.
ARE YOU THE INDUSTRY VALUE? If your company has positioned itself to provide a good value or affordable product within its industry, it does not necessarily mean that the talent will be at the lower range of market compensation. As with each of these categories, the MVV may have other values to consider. For example, you may need to invest in top quality customer service or a nurturing employee environment. Be mindful that, based on the MVV, you may seek to pay the upper range of compensation for certain demonstrated abilities that tie into how you position and promote yourself to others.
When developing a formal compensation plan, there are a number of considerations. Not all employees are looking for the highest salaries. Instead, they may be looking at company culture or the opportunity to grow. Being clear about your Mission, Vision, and Values- and having a compensation plan to match- gives prospective employees the chance to seek out the best company for their needs.
The team at The Resource Squad is available to assist companies with developing an appropriate compensation plan for now, and for the foreseeable future. Let us help you create a plan to attract the best employees while living true to your mission. Call us today for more information.