Total reward programs are an important piece of making your company the best place to work and attracting the best technical talent for your organization. We will discuss how to non-compensation benefits and perks can increase your acceptance rate as well as how you’re able to offer a well rounded strategy when it comes to compensation. Traditional compensation in the form of cash is important to attract candidates and retain workers. We need to pay people a fair wage to attract talent to our organizations. If we want to attract the best talent, we need to pay above average standards while also offering some additional perks and benefits.
Over the last 36 months, we’ve seen a growing trend in our roles in recruiting and HR and that is candidates who are receiving multiple offers often at the same time during their job search. This occurrence is increasing salaries at a very high rate. The best way to increase offer acceptance especially in multiple offer scenarios is through the offering of non-cash compensation.
Everyone loves employee work perks. Offering different things that your competition does not can push the scale when it comes to obtaining a strong candidate or having them go to a competitor. Perks don’t have to be all cash and in fact, most aren’t. Learning to offer things that will affect the work/life balance of your employees goes a long way in determining the strength of your culture and business. Aside from free dry cleaning, breast milk delivery services and my new favorite – PwC’s student loan payoff program. Whether you like it or not, employees are more effective during certain times of the day and not everyone operates on maximum productivity during the normal work hours.
Non-cash compensation like merchandise, travel, gift certificates, etc. can sometimes be more effective then additional perks in your workplace. Using non-cash compensation as an effective motivator can be perfect under the right circumstances. Cash should always be at the forefront, but a recent study suggests that performance tied to non-cash compensation can help pull candidates in. Another study done by the Incentive Research Foundation found that noncash awards have proven to be more effective and therefore more efficient than traditional forms of compensation when properly used in total rewards mix.
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Employee Career Advancement and Development Programs
While free dry cleaning and flexible scheduling are great, many employees want to be encouraged to increase and develop their skills during their time at your workplace. Setting up a career advancement program not just for high potential employees is essential. It could be investing in a stipend to encourage the exploration and development of new skills during employee off hours or it could be encouraging employee development through established corporate programs, attending conferences and conventions using subscription services like Lynda.com to allow employees to take courses and be exposed to new skills and abilities. Lynda was key for me diving back into the corporate world having spend the last eight years without Outlook mail and struggling to use the technology. I was grateful to my employer for the opportunity.
Personally speaking, I believe that employee career development programs are probably the most important for your most productive workers. They want to accel and they are likely choosing your organization because they want to advance in their career, and in order to attract as well as retain them, you need to present these type of organized opportunities.
What does this mean for your job offer acceptance rate?
When you have a well rounded total rewards mix in your compensation strategy your acceptance rate will increase. Candidates look for a number of things when it comes to accepting a job offer. When your overall compensation strategy has both non-cash compensation incentives and perks attached to it, you’re acceptance rate will likely be on the rise. Start looking at what your competitor is doing in order to create a holistic approach to your compensation plans. If you aren’t sure where to start, try these three things:
- Match competitive offers: Most companies will put their compensation strategy online in order to attract stronger candidates. Take a look at what your competition is doing and one up them or at the bare minimum match them.
- Understand what your employees want: We talked about this in a previous post, but make sure you’re routinely taking surveys on what is most important to your employees and act upon the top five items, if possible.
Take inventory of what has been effective in the past: If there is a certain program that your employees have loved in the past, improve upon it even more and make it a “must-have” perks in the workplace. Take a play out of Netflix’s playbook. Once they started offering unlimited vacation policies, everyone saw the potential and mimicked.