Reduce Your Turnover Rate with Compensation Studies

Reduce Your Turnover Rate with Compensation Studies
July 31, 2023 HR Fit
Job candidates reviewing their resumes before their interviews

Watching someone walk away from your company is hard, especially someone who has been a part of your team for years. That experience and industry knowledge is difficult to replace and may even seem impossible. And in today’s work climate, just finding someone to fill that position is a challenge. Keeping your most valued employees is paramount in today’s job climate, but doing so means thoroughly examining your business and, setting biases aside, comparing yourself to your competition. Known as a compensation study, this process can yield eye-opening results and lead you to improve your reputation as an employer.

A national problem

Businesses across the country are struggling to retain their talent, a problem that’s been ongoing for the last three years. According to People Managing People, more than 50 million Americans quit their jobs in 2022, the highest number reported in the history of the U.S. Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). Companies facing high turnover rates must learn to cope with a shortage of talent in addition to navigating a highly competitive job market. According to the June 2023 JOLTS release, employers are challenged with filling roughly 10 million job openings from about 6 million unemployed Americans, leaving employers wondering what they can do to avoid the constant headache of replacing the worker exodus.

Win over your workforce

Reducing your turnover rate begins with making your employees feel valued and cared for. You can begin by examining pay rates and benefits, but how do you know what your competitors are offering to lure your talent away from you — and how do you outdo them? A compensation study provides an objective look at how well your company compensates employees and how your pay rate and benefits packages compare with other businesses in your industry. Conducting regular compensation studies will help your business adjust in an evolving job market, elevating your employment brand from the competition and ensuring you remain an attractive option to job seekers as well as an organization your current employees don’t want to leave. Companies that have employed compensation studies from HR Fit report the following benefits:

    • Accurate compensation packages for employees
    • Culture of transparency and honesty in the workplace
    • Competitive pay rates for every position
    • Increased employee retention
    • Insight into true market value for each position
    • Salary range that is competitive and also sets a standard for entry level and highly skilled new hires
    • Ability to compete with larger businesses when creating a compensation package

Improve your wages and benefits packages today — we can help. Learn more about Strategic HR Consulting from HR Fit or call us at 309.863.1202.