Raises can provide incentive for talent to stick around.
Every HR professional knows that maintaining a competitive edge is important to ensure that a company is able to keep talented workers on board. While some companies may have lowered salaries and stopped giving out raises as an effect of the recession, a recent survey has shown compensation is an important part of human resources management. Companies that want to be successful and competitive must work hard and offer not only competitive salary and benefits packages, but also raises that reward top performers.
According to a recent article from HR Morning, the 2014/2015 US Compensation planning survey from Mercer reports that the average raise in 2015 will be three percent. The survey also revealed that top performing workers will be receiving higher salary increases. The reason for the increase? Companies want to hold onto their talent.
This increase is an important consideration for companies that want to take steps toward retention. Any company is only as good as its employees, but although HR departments know they must take steps to keep employees satisfied, budget constraints can sometimes put a damper on the ability to provide competitive pay.
However, with the number of available jobs increasing, organizations that do not offer competitive compensation may not be in a position to attract talent, and additionally find the talent they currently have heading out the door for better opportunities. A closer look at budget and payroll may reveal that there is room to improve payment for valuable workers.
With the help of a comprehensive HR system, HR departments can be better equipped with the tools and information necessary to make important compensation and payroll decisions.