In order to create a desirable organization where employees feel valued and motivated, employers must pay attention to what appeals to both current and potential employees. A key aspect of this is offering a competitive total compensation package. Total compensation refers to the complete pay package awarded to employees on an annual basis, which includes not only the base salary, but also all direct and nondirect compensation such as healthcare and retirement benefits, incentive pay, and paid time off (SHRM, 2021). This comprehensive approach to compensation ensures that employees are not only fairly compensated for their work, but also enjoy a range of benefits and perks that contribute to their overall wellbeing and job satisfaction.
Competitive wages and health-related benefits are a common item of interest but that is not the only source of appeal for employees (Dessler, 2018, pp. 419-423). One effective way to attract potential employees to an organization is by offering a range of benefits that cater to their needs. Flexible scheduling, for instance, can allow employees to balance their work and personal life more effectively. Pensions and life insurance provide a sense of security for their future, while paid time off offers the opportunity to recharge and maintain a healthy work-life balance. These benefits are not only attractive to employees but also demonstrate that the organization values their well-being and is committed to their long-term growth and success.
In summary, a competitive total compensation package is a crucial factor in creating a desirable work environment and retaining top talent. Employers who pay attention to these aspects of compensation will be well-positioned to attract and retain employees who are motivated, productive, and dedicated to the success of the organization.
Dessler, G. (2018). Human resource management (16th ed.). Pearson.
SHRM. (2021, July 27). Total compensation. https://www.shrm.org/resourcesandtools/tools-and-samples/hr-glossary/pages/total-compensation.aspx