Safari Solutions
“Tiger Eye Hiring …a better way to hire.”
Business owners face compensation challenges for 2010. Although the economy may be rebounding, there is still financial uncertainty. Read on for tips on how strategic compensation adjustments can retain your best employees.
Ann Clifford, President
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Dos and Don’ts
Can you ask a candidate to provide a copy of their W-2 to verify prior year compensation?
See answer provided below.
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Key Employees Jump Ship
72% of employers restructured or laid off employees since the recession began in 2008. The effect has been a significant drop in employee commitment and loyalty. Engagement has dropped 23% among top performers. And, more than 40% of top performing employees reported that pay and benefit cuts have had an adverse impact on work quality and customer service according to a Watson Wyatt survey.
Compensation budgets will continue to be tight. According to a study by George S. May International, 77% of small businesses do not plan to give raises in 2010. The risk of ongoing compensation freezes and cuts is “turnover.” Top performers have employment options, even in soft labor markets. Expect 2010 to be the year of musical chairs as employees begin to search for better employment opportunities.
See answer provided below.
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Compensation is #1
The number one factor that contributes to job satisfaction for employees at small companies (under 100 employees) is compensation. To prevent top performers from jumping ship, employers should reverse pay and benefit cuts for their key employees as soon as possible or as business results improve in 2010.
First, reinstate base pay back to pre-recession levels. Second, provide your top performers 2010 merit raises that are significantly higher than their lower performing counterparts. Differentiating will send a clear message that you recognize their contributions. For example if you can afford to give a 2% raise to all your staff, instead give your top performers a 3-4% raise and your other employees less.
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Your Viewpoint Matters
Do you know what a “hidden paycheck” is? Visit our blog for the answer and to share your thoughts on compensation strategies for 2010.
Visit the Safari Solutions Blog!
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Safari Interview Tip
Ask candidates to be specific about their past compensation packages. Request a break out of base salary, bonuses, commission, and other incentives. Then, ask for feedback about their satisfaction with specific aspects of the package.
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Safari Success Story
The Board of Directors of a privately held company engaged Safari Solutions to research salaries for the President/Owner. Based on salary data from like-kind companies, Safari Solutions recommended a competitive compensation package for the owner.
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Did You Know
Safari Solutions celebrated its 10-year anniversary by hosting a client appreciation open house last month. Click here to listen to what Bob Huffstodt, President of Polymer Technology Systems remarked.
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Safari Quiz
In 2010, employers are expected to distribute raises of what percent?
A. 5.4% B. 2.8% C. 3.6% D. 0.9%
Click Here for the Answer
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Answer to Today’s Dos and Don’ts
Can you ask a candidate to provide a copy of their W-2 to verify prior year compensation?
Verifying compensation is an important part of the hiring process, both when qualifying candidates and preparing an offer. Asking for W-2 information is legal, although it may make candidates feel uncomfortable. Inform the candidate that you need the information to ensure the most competitive offer, thus avoiding frustrating salary negotiations.
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Safari Solutions’ recruitment process outsourcing services help companies hire better. Acting as a corporate HR partner, we help companies make educated hiring decisions by sourcing, screening, and evaluating candidates with a high level of due diligence. Over 250 business owners have improved hiring results using Safari Solutions’ Tiger Eye Hiring™ process.
email: info@safarisolutions.com
phone: 317-578-1310
web: https://safarisolutions.com
Safari Solutions | 5655 Castle Creek Pkwy N Drive | Suite 200 | Indianapolis | IN | 46250