Are You Dangling a Carrot to Recruit and Retain Employees? Try Focusing on Culture
While well-designed bonus and incentive plans support achievement of organization mission and goals and maximization of ROI, simply dangling money in front of people does not buy maximum employee and organization performance. Most importantly, putting a “pay band-aid” on broken cultures and people issues does nothing to fix those situations.
4 Reasons Employees Lack Engagement:
Lack of Recognition - They feel their contributions are not recognized by company leadership.
Poor Leadership - His/Her direct boss does not invest in his/her career growth and development.
No Voice - They feel they are not heard when they share information that is hard for leadership to hear.
No Connection - Other reasons employees leave employers include lack of empathy from their boss, feeling their work has no purpose or meaning, and lacking connection with co-workers.
Define a New ‘Cultural’ Carrot
Employee pay structures and practices that support the overall strategic initiatives and culture of an organization are critical to maximizing profitability and ROI. By designing compensation strategies that support a robust employee culture, you’ll make recruiting and retention much easier. Salary planning cannot be done without integrating cultural alignment, including maintaining a focus on employee engagement. Employee compensation is not just about collecting good salary survey data and knowing how to view that data with an eye to being competitive in labor markets.
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Think your culture could use a check-up? Take our Cultural Assessment and see if you need to be realigning your culture.