In an economy highlighted by a shortage of quality technology professionals, maintaining a high retention rate plays a key role in the overall efficiency and productivity of many businesses. It is also helps an organization’s HR-related expenses stay at a minimum – not surprising considering the high cost of the hiring process. Interestingly, organizations are discovering pay transparency appears to influence retention in a positive manner.
With the hope for a satisfied IT staff in mind, here are a few ideas on leveraging a transparent pay scale to help keep your team onboard. Building a measure of trust pays dividends!
A Smart Compensation Strategy Builds Trust
The compensation services company, PayScale, recently released a report highlighting a few best practices regarding employee compensation. The survey’s over 7,700 respondents include a variety of managers and HR executives. The report’s key finding notes organizations are increasingly using innovative pay policies to better compete for industry talent.
More transparency around pay rates is one of these innovations, according to PayScale senior vice president, Tim Low. “If you think you’re being transparent, but your workers don’t — or your workers are misunderstanding, and you’re not correcting that, you’re missing a chance to make that connection and improve trust, engagement and understanding. It’s not just what a company pays, it’s how they pay and how they communicate about it that has a major impact on culture, attitude and morale, engagement and performance,” commented Low.
The important thing – even more than the salary amount – is building a trusting culture that makes it easier to retain your best IT workers. This makes your staff feel valued and less likely to look elsewhere for technology employment.
The Competition is Moving Towards Transparent Salary Policies
The PayScale report highlights a trend among businesses towards pay transparency. Nearly one-third of the surveyed companies maintain transparent pay policies, with that percentage expected to be close to one-half by the end of this year. Since the competition is moving in this direction regarding their compensation policies, your organization needs to follow suit to retain your talent.
Focusing on open communication channels between management and employees is a good first step in building trust. Using market pay rates – and being open about that data – is another smart move. Additionally, give your management team the proper training about pay transparency.
Soon your company’s compensation policies, culture and retention rate will be the envy of others in your industry.
When you need additional insight on building – and retaining – a talented technology staff, talk to the experts at MindFinders. As one of the top IT staffing agencies in Washington, DC, we offer a great supply of top-notch candidates. Schedule some time with us soon!
Written by Tim Booker, President and CEO of MindFinders, with over 20 years of industry experience.