The job market has become a highly competitive environment for both employees and employers. If a good salary was enough to hold a professional for years in the organization, today it is no longer. For this reason, many companies have been investing heavily in a good remuneration policy .
In this sense, through the remuneration policy, there is an increase in salary through benefits and profit sharing, for example.
As a result, the remuneration policy went from unnecessary spending to a mandatory business strategic instrument. It is a motivational tool capable of influencing a professional’s decision about whether or not to stay in a company.
However, there are numerous challenges to implementing a good remuneration policy. In this article we will talk about the importance of the remuneration policy and give tips on how to build it.
What is remuneration policy
The remuneration policy can be described as a set of strategies that aim to reward employees for the work provided.
Through the benefits policy, the company is able to motivate its employees and consequently directly impact their productivity. Facilitating the attraction and retention of talent in the company.
“The remuneration system is the set of coherent and aligned instruments with the company’s strategy, of a material and immaterial nature, which are the counterpart of the contribution made by the employee to the results of the business, through his professional performance and are intended to reinforce the your motivation and productivity ”. (CÂMARA 2000, apud Rito 2005, p.45).
6 tips for implementing a remuneration policy
To build a good remuneration policy, it is important to pay attention to points such as: job and salary plan, benefits, commissions and bonuses and much more. Below we will talk about each of them.
Create a job and salary plan
The first step in building a good remuneration policy is to know how the company works. This is based on the assumption of describing jobs, salaries and functions well, in order to evaluate remuneration and benefits.
With this information, in partnership with the sector’s own employees and managers, the remuneration policy becomes more assertive. Since with these data in hand it is easier to create specific strategies for each position.
In addition, a job and salary plan allows employees to have a broad view of possible promotions and growth opportunities within the company.
Develop a benefits policy
90% of professionals consider professional benefits as a great motivating factor to keep them in the company. Salary is a priority for only 20%, revealed an Insper survey .
Therefore, a good remuneration policy necessarily involves an effective benefit plan . Medical insurance , food vouchers, culture vouchers, home-office work are some of the most common benefits offered by organizations.
The ideal in this case is to conduct an internal survey so that employees can vote on the most desired benefit internally. This way, strategic action becomes more effective.
Offer participation in Profits and Results
Dedication and commitment to achieve goals and objectives. Every company dreams of having an engaged and productive team. Within this scenario, there are several incentives for employees that can boost productivity .
In a policy of benefits, Profit Sharing can be a great option. This is because within this strategy, employees can feel even more important within the company and recognize the direct impact they have on results.
Thus, the professionals “wear the shirt” of the company with greater interest, since they know that the profits of the organization will also give him a positive return financially and professionally speaking.
Value work with commissions or bonuses
A commission or bonus is nothing more than an increase in payment made by the employer as a way to recognize and value the work done by the employee.
It is usually linked to a pre-determined achievement of goals and results by the company. It is a variable remuneration and can occur monthly , bimonthly, quarterly and annually, according to criteria created by the organization itself.
It is important in this case of commissions and bonuses , within the remuneration policy, that the company makes it clear to employees how this mechanics works.
In view of that, he will know exactly the path he needs to follow in order to achieve the goals set for him to achieve this benefit.
Allow wage advance
According to SerasaConsumidor , about 41 million Brazilians would take out a loan to pay for any expenses that arose unexpectedly.
With this in mind, many companies have adopted wage advances in their remuneration policy.
With it, the employee receives an advance payment for the services provided and manages to avoid possible contingencies with bills and debts. One that gains strength in the market is wages on demand .
There are no specific dates for the employee to receive an advance. The employee himself is free to ask for a proportional amount of his salary even if he only worked for a week.
In addition to being a strategy that opens the door to labor flexibility, wages on demand are the object of employee engagement and appreciation . It is also a demonstration of the company’s concern for the employee’s personal well-being .
Measure stock spend
The implementation of a remuneration policy requires the company to be grounded . There is no point in having a great idea on paper if the plan is financially viable for the organization.
The ideal is that the remuneration policy is a long-term strategy and that your company can afford the costs.
Attempting to put it into action without prior planning or a value destined for this process can dirty the company’s image.
Because, it will not be able to comply with agreed terms, pay bonuses, benefits and etc., and may even generate future labor lawsuits .
Remuneration policy: essential competitive differential
The remuneration policy is an essential strategy , both for those seeking to increase their market competitiveness and in attracting and retaining talent. In addition, remuneration policy actions have a sense of professional appreciation.
They are rewards in addition to the salary that has a high motivational power, directly impacting the results. However, a good remuneration policy requires planning from the company , which makes up a thorough analysis of investments and expenses.
It is crucial to have a broad view of the market and competitors and to assess where the company wants to go with the implementation of the benefits policy and what instruments will be needed to achieve it.
In addition, it is essential that the entire strategy is properly aligned with the organization’s employees. The entire remuneration policy needs to be transparent and fair in order to be truly assertive.