You always hear that the best investment you can make in your business is its people. And that involves much more than improving your recruiting and hiring skills. It means you need to have a well-thought-out compensation plan—one that motivates people to give you their best and improve your organization in the process.
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Competitive salary and incentives are two of five components of an effective plan. Others are benefits, recognition, and advancement; retirement plans; and opportunities for ownership. A recent Moss Adams survey says that combined salary and incentive compensation has become the prime attraction for good talent. The best way to assess compensation is to determine how valuable the position is to your firm compared to the value of the position in the marketplace.
Experience and talent are also key ingredients and can be a primary consideration for incentives. Expectations for the position should be clear and well defined so success can be easily measured and value can be felt both by your firm as well as the new hire. Part of the process also has to be subjective, utilizing your own assessment of the person’s ability to improve your brand along with more tactical measures.
Hiring the right people for the job saves you money and adds to your organization’s bottom line. Not having the right criteria in place or hiring someone and then figuring out what you want them to do is a costly way to do business and can result in costly mistakes and/or losing valuable talent.