Say Bye to Sky-High Salaries
In 2021, at the height of the Great Resignation, salaries were at an all-time high due to an employee-driven market. Employers exceeded their budgets to attract top-tier talent, and employees switched jobs in order to secure significant pay increases. Fast-forward to now, we are experiencing a decline in sky-high compensation packages. Employers are now cutting offers by as much as 40%.* This decline is expected to continue into 2024, with companies budgeting for 3.8% pay increases in 2024 vs a 4% pay increase, which was the norm in 2023.*
So, how do companies attract talent when they’ve hit their salary caps? Remaining competitive without offering top-tier salaries requires creativity, empathy, and a genuine understanding of what today's workforce values.
Below, we outline ways companies can remain competitive and continue to attract (and retain) talent despite not having the flexibility they once had on base salaries.
Equity
While equity is not a new benefit offered to employees, it has increased in popularity across various companies. Equity programs can incentivize employees to stay with a company long-term. It allows employees to accumulate wealth over time and appeals to talent when a company can’t meet their desired salaries.
Bonuses
Sign-on and guaranteed bonuses are another popular way to make a compensation package look attractive to talent. Both of these bonuses occur at different periods in an employee's time at the company. They are great workarounds for budgets and financial planning within the company. This multifaceted approach not only compensates for not being able to offer top-tier base salaries but also crafts an organizational narrative that recognizes and celebrates its employees in varied and meaningful ways.
Strong and Clear Opportunities for Career Growth
One of the biggest reasons we hear from candidates about why they are looking for a new job is the lack of career growth. When employees can envision a future with upward mobility and skill enhancement; it instills a sense of purpose and long-term commitment. For many professionals, the promise of progression, learning, and recognition can be as enticing as a high salary
Unique Perks
Monthly book allowances, team outings, game nights, or other unique benefits that enhance employee satisfaction.
Encourage Work-Life Balance
More times than we can count, we hear from candidates that they would take a pay cut for a better culture or more work-life balance (read our blog that includes ways companies can support work-life balance). In many instances, the intrinsic value of a balanced life, where time for family, passions, and relaxation is ensured, can outweigh the allure of a heftier paycheck.
Sources:
*Employers have had enough and are starting to cut salary offers by as much as 47%, according to analysis of 20,000 job postings. (2023, August 29). Yahoo Finance. https://finance.yahoo.com/news/employers-had-enough-starting-cut-153742991.html
*US employers plan lower compensation increases in 2024: Mercer. (n.d.). Www2.Staffingindustry.com. Retrieved September 29, 2023, from https://www2.staffingindustry.com/Editorial/Daily-News/US-employers-plan-lower-compensation-increases-in-2024-Mercer-66927
