Good Salaries and Benefits - Does a Good Employer Brand Guarantee Success?

06/12/2023 08:37 AM

Employer branding may sound abstract, but it can be assessed with ease through four dimensions. As experts in the field of HR and employee relations, Aniday will guide you through this blog post to understand the third dimension of employer branding assessment: Benefits, which encompass four key elements that enhance an employer's brand: salary, benefits, company performance, and incentive systems.

1. Salary

Salary is arguably the most important factor for job seekers worldwide. Without competitive salaries, it's challenging to attract top talents. To gauge your company's competitiveness in terms of salary, you can refer to the median salary data of all publicly-listed companies in your country.

For international companies, Mercer's Total Remuneration Surveys (TRS) or some headhunting companies provide cross-regional salary and benefits comparisons, helping you understand market differences. HR professionals should not only know where their company's current salary level falls within the PR range but also grasp the salary levels of competitors through interviews. To win the talent war, you need to understand the compensation landscape.

2. Company Benefits

Beyond salary, job seekers highly value company benefits. According to the data analysis from KEYPO, company benefits in order of importance include bonuses, employee profit-sharing, education and training, year-end bonuses, group insurance, flexible hours, and community activities.

Moreover, if a company has a significant female workforce, certain benefits can improve the working environment for women, such as maternity leave policies, childcare centers, and lactation rooms. HR professionals can contemplate their company's advantages in terms of benefits and how to establish these advantages.

In some companies they are adopting "flexible benefits" policies, allowing employees to choose benefits tailored to their preferences and needs within the same budget. Although the expenditure remains the same, employee satisfaction is significantly higher.

3. Company Performance

The performance of a company is closely linked to its core competitiveness in the market. The stronger a company's core competitiveness, the greater its pricing power. Core competitiveness encompasses several factors, including revenue growth rate, profitability growth rate, earnings per share, and cash flow (financial data disclosed by listed companies). According to the Gallup Path Theory, good employees lead to loyal customers, which contributes to increased sales and profits. Candidates typically prefer to join and grow in high-performing companies, so it's important to let talent know whether a company has a strong financial track record.

4. Employee Incentive Systems

While this aspect can be seen as an extension of benefits, employee incentives hold greater importance and deserve separate attention. In addition to conventional year-end bonuses and performance-based incentives, other methods to motivate employees include employee stock options, profit-sharing through stock allocation, stock options, technical equity participation, and employee stock trusts. The main purpose of an incentive system is to align individual performance, income, and future company performance. Companies with incentive programs generally have better employee retention rates. Key points for implementing employer branding: Difficulty in recruiting is determined by salary level and range of fringe benefits

Compensation and additional benefits are core elements of an employer branding checklist and require thorough research and review by an HR professional. These factors are also a major concern for job seekers, and when a company lags its competitors in terms of compensation and benefits, attracting top talent can be a difficult task, leading to large-scale hiring efforts. results may be limited. Surveying rejected candidates can provide valuable insights. This data serves as the basis for management to understand the reasons for such decisions and serves as the basis for future workforce optimization strategies.

After reading this article, you can take some steps.

1. Assess your company's pay competitiveness by taking our 104 Pay & Benefits Survey.

2. Think about the benefits of your business and the benefits it brings.

3. Think about the common characteristics of successful companies. These findings can be used as a reference.