Even with a developed recruiting program, strong company culture and great work-life balance, it’s difficult for companies to attract and retain the best employees without an all-inclusive compensation strategy. Add in the combination of high inflation, talent shortages and the Great Resignation, and we’re left with a hyper-competitive labor market. As a result, employers must think outside of the box to retain top performers and explore new ways to increase the value of total compensation offered. Learn how in this article.

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Article reprinted from Spring 2022
Talent & Compensation
Rethinking Total Compensation to Retain Top Talent
I
t’s no secret that top talent expects to be paid top dollar.
Even with a developed recruiting program, strong company
culture and great work-life balance, it’s difficult for
companies to attract and retain the best employees without an
all-inclusive compensation strategy. Add in the combination of
high inflation, talent shortages and the Great Resignation, and
we’re left with a hyper-competitive labor market.
Unlike 2020, employees now have the upper hand in the
proverbial “seller’s market.” In an unprecedented time for
attracting and retaining talent, CEOs and CHROs must think
outside of the box to motivate and retain top performers and
explore new ways to increase the value of total compensation
offered.
Base Salary vs. Total Compensation
Before making any changes to your compensation strategy,
it’s important to first understand the difference between base
salary and total compensation.
Base Salary — The amount per hour or year an employee
is paid. This is the figure that appears on the employee’s
paycheck. This number does not include bonuses, benefits or
any other perks.
Total Compensation — Everything an employee receives
in exchange for working for your company. This includes a base
salary, bonuses, incentives, benefits, on-site amenities and any
other perks you offer. Some typical benefits included in total
compensation are:
■
Health insurance
■
Vision dental insurance plans
■
Disability life insurance policies
■
Retirement plans
■
Performance bonuses
Creative Ways to Boost Total Compensation
Beyond base pay increases, there are many unique ways
that organizations can add additional value to their total
compensation package and reward and retain key employees.
The following are just a few.
Employee Stock Ownership Programs (ESOPs) — ESOPs
come with several benefits for employees and employers.
They could very well be claimed as the most important form
of remuneration for employees of any organization. From a
company’s perspective, they can be useful in maintaining the
liquidity of the company. From an employee’s standpoint, it’s a
reward for their loyalty to the company.
Paid Training Stipend — Companies that include a paid
training stipend in their total compensation package show an
investment in their employees’ career success. Additionally,
offering training opportunities helps to upskill and develop
existing employees so they can perform their jobs more
effectively and become strong leaders.
Executive Bonus Plans — When it comes to
retaining top talent, employers need to get creative
with benefit offerings. Through a 162 executive bonus
plan, companies can offer life and/or disability income
insurance to their key employees.
Employer-Paid Individual Term Life Insurance —
Finding a way to provide top performers with a valuable
benefit — one that won’t be too hard on the bottom line and
is easy to administer — could be an ideal solution to reward
their contributions. With Focus 10 Life, a fringe benefit,
non-voluntary and employer-paid program, 20 or more
employees in full-time, white-collar occupations are eligible for
guaranteed level premiums for 10 years.
IDEAS TO COMBAT
THE GREAT
RESIGNATION
THE GREAT RESIGNATION
— Special Edition —
Interested in the key
elements of a strategic
comp program and
other critical HR topics?
Check out the “Talent
Compensation Trends
Report — Spring 2022.”
CBIZ TALENT COMPENSATION
SOLUTIONS TEAM
CBIZ LIFE INSURANCE SOLUTIONS TEAM
S T R A T E G I E S Be sure to
visit our Great
Resignation
Resource
Center!