Whether fresh out of college or moving on from a previous company, good talent is out there. The challenge many businesses face is presenting better packages than the ones their competitors are offering. To get at the root of this, we’re going to take a step back and look at compensation basics. What does your company include as basic compensation? What can you offer that you might not already have? And how does relocation factor into it?
Compensation can be defined as the funds and benefits an employee receives for doing their job. For an entry level, minimum wage job, compensation might just be an hourly wage. For a job requiring experience and perhaps even a degree, compensation is more likely to include a salary, health care, retirement contributions and more. While compensation programs will vary company to company, a good one will not only stand out among potential employees, but will also help retain current employees.
Determining Levels of Compensation
There are many different ways a company can go about determining the level of compensation a job requires. The online resources of today can make determining a salary for even the most niche of roles relatively easy. Starting from the need the role fills, businesses can determine pricing based on the value of the position to the company. And, while it plays the largest role in compensation, salary is not the only determinant. Benefits that may have been seen as decision making perks decades ago may no longer hold the same sway. Take for example a fleet vehicle. Older generations may enjoy the perk of a company car, while other candidates relatively new to the workforce have no interest.
Offering Desirable Compensation and Benefits Today
2020 drew a clear line in the employment options of today: there are those who can work their jobs from home and there are those who cannot. Even graduates new to the workforce learned firsthand about the possibilities of remote work in their final year of school. More and more, employees are looking for flexibility. That benefits employers too. Companies can broaden their search for talent. So where does relocation as a benefit fit in this new era of work?
Sponsored moves have been typically used to relocate candidates from their previous location to their city of employment, or to shuffle an employee from one office of the business to another. It can still be used in this way today, but delocation is another option growing in popularity.
As remote work became a necessity in 2020, many employees, especially in major metros, looked for other places to live. Some employers offered them delocation packages. The benefit went both ways. Employees could live somewhere they wanted to away from headquarters, and employers wouldn’t have to compensate for the high cost of living in a major metro.
Not every candidate will be interested in a relocation offering. Many will be happy to continue working where they are. But the option to relocate to another place with help from the company? That kind of investment goes a long way to demonstrating a company’s interest in the quality of its employee’s lives.
Updating Compensation Basics
Compensation programs rarely offer anything new. Candidates have come to expect the salary, the health care package and the 401K match. They may even be used to the benefit of a company car. But a delocation offering? That’s a standout benefit – something to set your company apart from other potential destinations for talent. Interested in learning more about what implementing a delocation program looks like?