3 Reasons Why Your Compensation Plan Is Not Competitive - Safari Solutions

3 Reasons Why Your Compensation Plan Is Not Competitive

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Business owners often think they are competing for talent from like-kind businesses.  Yet, pay must be relatively competitive within the larger labor market to attract and retain employees.  Here are three reasons your compensation plan is not competitive:

  1. Don’t know who are your talent competitors.
  2. Everyone gets the same merit raise without regard to value.
  3. Lack of proven upside compensation or advancement potential.
If successful in persuading a candidate to join your company for a lower base salary than their previous job, be very cautious.  Your risk is reduced if you can paint a clear future for earning more than what they could have earned if they stayed in their current position. Yet, without a clear earnings future, candidates may not bring the level of commitment you desire.

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