How Do We Stand on Salary?
Scarecrow? Woodman? or Strongman?
It’s predicted that when it comes to salary increases for 2016, many organizations will be facing a similar scenario as 2015. According to one SHRM article, the salary budget increase for most organizations will be roughly 2.9 %–up only slightly from 2015’s 2.8% increase.
With less than exciting salary increases slated for employees this year, many organizations are looking for alternative ways to retain talent.
For many organizations, performance based pay seems to be a likely answer. Employees seeking healthy income increases will need to step into higher level positions in order to achieve a significant pay increase.
Outside of encouraging employees to work towards promotion opportunities, organizations are working hard to showcase the current benefits that employees already have available to them. Many organizations offer substantial benefit options that employees may not necessarily be aware of.
HR leaders are now focusing on creating effective communication plans that alert employees of the valuable benefits available to them within the organization.While both options are step in the right direction to keep employees in engaged when salary expectations fall flat, there is also a third option for HR leaders. Developing career path plans when recruiting can help both organizations and candidates see potential paths to success when advancing their career with a company.
Rachel Sobon, HR Director for CRP Industries has already seen the benefits of offering employees career development plan options. “Our organization has developed many opportunities for employees to gain exposure to different areas of the company. This helps employees not only understand the business as a whole, but also what “goes on” in other departments and how each team depends on the other to work towards the common goal. Having this cross-functional capability in place has allowed employees to learn transferable skills so that they don’t just have to follow a single line career path, but explore new areas of interest.”
With a clear plan in place, future employees will know the steps they will need to take to accomplish their career and salary goals. Greater organizational transparency translate into happier employees and organizations that are better prepared for the future of their talent team.