Send the Right Message

When it comes to employee compensation, most managers are busy asking: “What do I have to pay to ….? ” That is not an easy question to answer. A better question might be: “What do I want my compensation package to say? ” Whether you realize it or not, it is already saying a lot. The benefits, bonuses, and incentives your business offers speak volumes as far as your employees are concerned. Child care and health benefits say that you value family. Longevity bonuses for employees on the anniversary of their employment with you says that you value employees who stay with the business. Throwing a party at the end of your business’s busy season lets the employees and their families know that you appreciate it when your people go the extra mile. Bonuses, profit sharing plans, and other incentives are amazing managerial tools, but they can also become a slippery slope if you aren’t careful. Before dangling any carrots in front of your employees, make sure they lead your business down the right path. First, some definitions According to Schuler, “Total compensation involves the assessment of employee contributions in order to distribute fairly and equitably both direct and indirect organizational rewards in exchang