The top talent in many UK companies is not happy and these employees are voting with their feet, recent research shows. This is despite the fact that many of them are highly paid, earning on average £325,000 per annum and receiving a bonus of around £100,000. This just goes to show that money does not always motivate. FCIPD qualified consultant Sandra Beale explains how to keep highly skilled employees using benefits packages.
Cause and effect
So what are the reasons why top talent is causing high turnover costs to organisations? According to the Chartered Institute of Management research they are unhappy with company pay structures, lacking job satisfaction, training and development opportunities, and relocations which create job insecurity.
So as companies fail to meet the expectations of these top performers, they often fail to make the grade. Many companies feel that paying high salaries ensures high productivity and profits, according to research done by Income Data Services; but this is not always the case. Companies therefore end up paying out huge salaries yet strategic business objectives and performance targets are not met.
Consultation
The pay and benefits package of an executive usually comprises salary, benefits, performance bonus, share options and car allowance as well as the standard pension, private health insurance and healthcare.
However, companies need to consult the individuals concerned to ensure that the pay and benefits package is tailored appropriately and also look at job satisfaction so that the total reward package fully meets the needs of both the individual and the company.
Goal and benefits
As with all reward solutions the total reward package for top talent needs to be fair, equitable, transparent and competitive. To get ahead of the game, companies need to be highly creative to determine reward solutions that will recruit and retain in the face of stiff competition.
Using the benefit package to incorporate different benefit solutions can make the world of difference, such as paid sabbaticals with holiday vouchers. Alternatively, the opportunity to drive a high performance car on the open road for meeting company targets can be a huge motivator for certain individuals fostering high performance. In such instances both the individual and the company benefit appropriately.
Executives gain the recognition and respect for a job well done and for the huge responsibility they carry to ensure the company performs well.
The company benefits by fostering high performance, gaining competitive advantage and addresses the huge skills shortage that exists in the UK.
Training and flexible thinking
Offering stretching training and development opportunities can enhance job satisfaction. These typically highly educated top performers want to continue growing their skills through a range of options such as further academic qualifications, secondments and action learning opportunities. Likewise the company benefits from having top employees who are in the know with new ideas which help to stay ahead of competitors and avoid products and services becoming stale.
When looking at relocating companies should consult with their top talent to see if this is really necessary or could their roles be carried out in a different way, for example by incorporating flexible working opportunities, including home based working. This can benefit the company as well by not paying out huge relocation or redundancy costs to all concerned.
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For further information contact Sandra Beale on T: 07762 771290 or email [email protected]
