What a Good Compensation Package Looks Like

One of the ultimate challenges of talent resourcers, hiring managers, and recruiters is offering their candidates a good compensation package. When we speak to new clients for the first time and they tell us about their difficulties attracting and retaining top talent and how their recruitment problems are hurting their business productivity, we are always eager to ask them about the salary offerings and the company’s employee benefits. It’s not unusual to learn that some of their employee compensation packages were last updated years ago. But what exactly makes up a compensation package, and why is it so important to get it right?

Understanding Compensation Packages

A compensation package is the financial rewards and additional benefits organisations offer their employees in return for their skills, capabilities, and experience. It’s more than just the salary. When talking about compensation packages, we refer to a whole range of employee perks and benefits to ensure a happy hire and happy employees. 

Components of a Compensation Package

Salary

A competitive base salary is the single most important component of a good compensation package. That bit hasn’t changed over the years. Salaries should be structured according to the role, industry standards, candidate experience, and qualifications. 

Bonuses

Bonuses are performance-based and designed to reward employees for contributing to the company’s success. Some companies have bonus schemes with annual, quarterly, or even monthly compensations, often tied to individual and/or company productivity and performance metrics. Some others provide stock options instead of or as an addition to bonuses and commissions.

Employer Benefits

The ever-growing list of financial or non-financial employer benefits can include health insurance, enhanced pension plans, dental care and vision coverage, or life insurance. Or, maybe, a company car or additional paid time off, depending on the company. More recently, companies have decided to include funded IVF treatments and extended parental leave to attract more diverse talent. 

These benefits are vital for providing security to employees and their families, contributing to work-life balance, and being a critical factor in job satisfaction and employee retention. A compensation package includes benefits that can be attractive to different types of candidates. For example, health insurance retirement plans are popular for senior talent and families, while younger generations might prefer other employer benefits the company offers, such as flexible work schedules.

Perks and Freebies

Often designed to make the company more attractive, company perks can range from subsidised gym memberships to free meals, mental health days and support for wellbeing. 

What about flexible and remote arrangements?

Flexible, hybrid, and remote working options can be seen as either employer benefits or perks, depending on how they are implemented and perceived within the company. Since these working arrangements are more often viewed as part of a benefits package and even standardised across organisations, we like to think of them as employer benefits. 

Compensation Packages Need Adapting to the Changing Candidate Expectations

Since the pandemic and the Great Resignation that followed it, the workforce has undergone a speedy transformation. Candidate expectations have evolved and are constantly changing. Accordingly, compensation packages must adapt to this new reality. 

Today’s job seekers are looking for flexibility, work-life balance, and benefits that support their lifestyle and wellbeing outside of work. Companies that can adapt their compensation packages to the ever-changing candidate expectations are more likely to attract top talent. 

If you’re struggling to keep up with the changes, our team of expert recruitment consultants can help you understand current compensation and benefits trends and forecast future candidate preferences so you don’t lose top talent to your competitors. 

A list of the top priorities for job seekers in a compensation package in 2024

1. Competitive salaries: While not the sole focus in recruitment, a competitive salary is still crucial. Besides, salary transparency is more relevant than ever. Candidates hate job ads without salaries and are no longer afraid to walk away from a job if they aren’t pleased with the salary proposed in the final job offer.
2. Health and wellness benefits: As mentioned before, health and wellness benefits are more important than ever. Not only do they improve candidate attraction, but they also keep your existing workforce happy, so they are less likely to fly off if a recruiter headhunts them. 
3. Work-life balance: This includes flexibility in work hours and the ability to work remotely or from home occasionally or permanently. While many companies have asked their remote workers to return to the office after the pandemic, many candidates still demand hybrid working options to avoid long commutes and balance their work and personal lives. 
4. Career Development: Opportunities for growth and professional development can make a company stand out, so make sure your job ads reflect your company’s commitment to professional development. Another good idea is to use your careers page to discuss career progression. 
5. Company culture and values: Alignment with personal values and a positive company culture increasingly influence candidate decisions, so that’s also something to keep in mind when recruiting. 

How Adria Solutions Can Help You Build an Attractive Compensation Package

Adapting your compensation package to meet the new norms and expectations can be challenging. This is where Adria Solutions can step in and save you from more hiring headaches. As part of our tailored employer services, we offer expert compensation package benchmarking advice to help you stay competitive and appeal to exceptional candidates.

Interested in learning more about how you can optimise your compensation offerings? Get in touch with Adria Solutions today.