F5.003 (Employee Capitalism) START WITH THE BASICS - PAY, BENEFITS, AND JOB SECURITY - WILLIAM EASTMAN
Today's show will cover the foundation of building a total compensation package that attracts the right talent, provide reasons to stay, and incentivize performance.
In writing these show notes, I benefit from several "tours of duty' in the HR (Human Resources) field. Although not a HR expert, I have served in the C Suite of major organizations grabbing with how to =create the right mix. The challenges of billion dollar companies is no different than a startup about to make its first round of hiring - how do I use pay and benefits to attract the right people based on what I can afford?
WHAT YOU NEED TO KNOW
Let's start with one of the oldest rule in the HR Business:
"Pay is a Recruiting tool, Benefits are a Retention Tool, and if you want Performance - you must Pay For It!"
Let that sink in. How many times have you been unhappy with an employee that works at the same level after getting a pay raise? A salary increase has a momentary positive impact (a week or two depending on your pay period) and then is taken for granted. As for benefits, its impact is to create golden handcuffs making it difficult to leave. Neither of these have any real impact on performance.
We are not going to handle the "Pay4Performance" aspect in this show. In fact everything we are doing On Finance Monday and People Thursday is driving to that result. Today we are going to cover the basics - these must be right before you can move on to the big payoff.
WHAT YOU NEED TO DO
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