Attracting + Retaining the Best Talent: How It’s So Much More Than Just Salary

Let’s face it - looking for a new job can be the pits. But as we move forward into a new age of healthy work environments, equity and diversity, and pay transparency, companies are having to shift in how they think about and approach total compensation. Gone are the days where just any old salary will attract a bounty of outstanding candidates. 

Now, compensation and recognition in the workplace play a significant role in a candidate’s decision-making process. While typical factors like job responsibilities and company culture remain important, the importance of total compensation packages, equitable and competitive pay rates, and recognition is now at the forefront for many. Understanding these drivers is essential for helping businesses attract and retain top talent. 

Total Compensation Packages: Beyond the Dollars + Cents

If you’re not already hip to the knowledge, total compensation refers to everything an employee receives in exchange for their work, not just their salary. This includes other, maybe less concrete, things like health and dental insurance, 100%-employer-paid premiums, retirement contributions, paid time off, bonuses, professional development opportunities, and even non-monetary perks like flexible working hours and wellness programs. 

In today's competitive job market, especially in regions where the cost of living continues to rise, employees are more informed than ever about the full scope of what makes up their compensation package. It's not just about taking home a paycheck; it's about feeling valued and supported both in and out of the workplace. For employers, offering a comprehensive total compensation package from the get-go is a strong differentiator that can set them apart from competitors.

When candidates evaluate a job offer, they're asking: 

• Does this company provide health benefits that suit my needs?

• Are there opportunities for growth and professional development? Will I get stuck in a singular role?

• Can I build a healthy work-life balance with their vacation policies and flexible work options?

Organizations have to change their outlook on employees and see that offering competitive, well-rounded compensation packages highlights that they care about their employees’ overall wellbeing, not just their day-to-day productivity. 

Equitable and Competitive Pay: Ensuring a Fair Playing Field

Equitable pay is critical not only for attracting your next talent but also for retaining your existing talent. In simple terms, equitable pay means that employees receive the same compensation for performing the same job with similar experience, qualifications and years in the role. Period. For employers, offering equitable pay is more than just a legal or ethical responsibility—it's a business imperative. Pay equity fosters trust between employees and management, improves morale, and mitigates the risk of turnover in your staff.

Pay equity isn’t just about closing gender or racial wage gaps, though those remain a high-priority issue. It's also about ensuring that employees feel they're being compensated fairly when compared to their peers and others in similar roles in the industry. When employees perceive inequities in the workplace, it often leads to dissatisfaction, reduced productivity, and, ultimately, the loss of great employees.

Folks in BC are already well-versed in the concept of a living wage, especially in regions like Vancouver or Victoria where the cost of living is so high. If compensation packages don’t reflect the realities of the local economy, employers risk losing out on fantastic talent to competitors who do offer more competitive pay or better benefits.

Pay Transparency: Why You Should Give a Darn

One of the most pressing conversations in business today revolves around pay transparency. For years, compensation was a topic shrouded in secrecy, but that trend is shifting rapidly. Job seekers are now demanding more openness from companies about how pay is determined and where they fit within compensation structures. Not to mention, it will be your legal responsibility to start sharing salary information next year and onwards, depending on the size of your company. 

Pay transparency refers to openly sharing information about pay rates, pay ranges, and how salaries are set across different roles within an organization. When companies embrace transparency, it fosters an environment of trust and accountability and employees feel confident that they are being compensated fairly relative to their colleagues.

Moreover, pay transparency can positively impact a company’s reputation in the job market. Candidates today often look for companies that align with their values, and many prioritize transparency as a signal of fairness and integrity. A business that can clearly communicate its compensation philosophy and show that it values equitable pay will stand out in a crowded market with limited available talent.

Transparency also serves as a tool for addressing pay gaps. By making pay structures public, businesses can more easily identify and rectify any inconsistencies, ultimately contributing to a more equitable workplace. It also empowers employees to negotiate confidently, knowing they are equipped with the necessary information to advocate for themselves.

Recognition: The Non-Monetary Side of Compensation

While pay and benefits are critical, recognition in the workplace holds significant weight as well. Employees want to feel seen, appreciated, and recognized for their hard work. Consistent and meaningful recognition programs can enhance job satisfaction, boost morale, and foster a sense of loyalty. 

Workplace trends are shifting and employees are starting to put more weight on work-life balance, flexible working environments, and a sense of purpose in their careers, so recognition can be a highly motivating factor. Recognizing an employee’s contributions can come in many forms—from public acknowledgment, rewards, and peer-to-peer recognition programs, to career advancement opportunities. 

When businesses take the time to celebrate successes, whether big or small, they create a culture of appreciation and support that helps employees feel valued beyond their paycheques. This, in turn, boosts productivity, reduces burnout, and fosters stronger connections between employees and their employer.

Total compensation packages, equitable pay, pay transparency, and workplace recognition are such essential elements for both attracting and retaining talent. As the job market becomes increasingly competitive, organizations that offer fair and transparent compensation while fostering a culture of recognition will be best positioned to thrive. For local small- to medium-sized businesses, working to integrate these principles into their hiring and retention strategies can be the key to success and growth in a dynamic and evolving workforce landscape.

Do you need some help figuring out what comes next for your business? Let’s talk. We offer all kinds of support to help businesses grow into the best versions of themselves. You can reach us at connect@reimaginework.ca anytime.