the benefits of a competitive salary.

more than money

Employees today, especially the younger generations, have different expectations about work than even a decade ago. They want to be properly paid for their time, of course, but there is also flexibility in where they work — and how they work. Employees want the freedom to make decisions on their own. They expect their work to be reviewed on a regular basis and they want to be rewarded and recognized for their positive contribution to the company. Often, above all else, today’s employees want a good work-life balance.

what is compensation?

When considering how to compensate potential new hires and help retain top talent, here are some of the options.

1. salary

Offer the strongest base salary you can, taking into account your budget, your industry, your location, your competitors and the desirability of the job. Is this role critical to your company? Are there 10 candidates or 1,000? Consider how valuable the role (and the person) is to you and offer a base salary determined by those factors.

2. bonuses and incentives

Consider offering bonuses and other incentives to increase the deal. These include:

• stock options
• performance-based bonuses
• profit sharing
• spot bonuses for a specific job well done
• referral bonuses
• milestone bonuses for ongoing quality work on specific projects
• retention bonuses in times of change 

3. health and fitness

The more comprehensive the health coverage, the more enticing insurance is as compensation. Providing full medical, dental and vision insurance for the employee and their family is always desirable, but that’s not all. Companies today offer gym memberships, wellness programs and access to professionals like psychologists and personal fitness trainers.

4. retirement benefits

There are many ways to contribute to an employee’s retirement, each with its own benefits. Four examples are:

• Defined benefit pension plans: Both the employer and the employee contribute to a pension fund that provides a guaranteed retirement income based on salary and years of service.
• Defined contribution pension plans: Here the contributions are set, but the retirement benefits depend on the investment performance of the account.
• 401(k) plans and RRSPs: There are many different ways to contribute to a 401(k) plan or an RRSP (Canada), but generally speaking, employees contribute part of their salary and employers match this in some manner.
• Simplified Employee Pension (SEP) plans: These allow employers to make contributions to individual retirement accounts (IRAs) owned by employees.

5. professional development

For potential new hires and for existing employees, offer opportunities for training, certifications and career advancement, not only once, but continuously throughout their employment with your organization.

6. flexible work

Offer opportunities for remote work, flexible hours or compressed workweeks. Since the pandemic, many employees expect the option to spend at least part of their time working from home, where possible.

7. paid and unpaid time off

Part of a good compensation package includes generous paid vacation and unpaid vacation should an employee want extra time off at their own expense.

8. work-life balance

Offering compensation that is the right combination of the points above will give an employee or potential hire the work-life balance most people seek.

compensation is not the same for everyone

What one person deems as competitive compensation may be completely different from someone else. This is the same for potential new hires. The top talent you’re looking for may value a comprehensive health insurance package more than vacation time. For someone else, it may be the reverse.

This is why it’s important to ask about priorities during the recruitment process, in the early stages of employment and throughout a person’s employment with you. Know your employees. Set regular times to engage with them. Listen. You can adjust the compensation as needed and you’ll have continuous, real-time insights into exactly what people are looking for.

how you benefit by offering competitive pay

The benefits of a competitive salary are many. As mentioned, offering employees a comprehensive and competitive package helps attract and retain top talent, but that’s only the beginning. Creating a place of employment that treats people with respect, not only at the hiring stage, but at all times, leads to happier, more satisfied, more productive employees.

A team that feels cared for and appreciated is important to running a successful business. Providing competitive pay also strengthens your company’s reputation among your competitors, your customers and the public. And it can make recruitment easier and less costly as a result.

count on the Randstad salary guide

Each year, Randstad shares in-depth research into the salaries of multiple roles across various industries, including finance and accounting. Our trusted salary guide is the essential resource for employers aiming to align their compensation with the broader market.

Find out more about the most in-demand positions. Which are the hardest to fill? How is automation affecting the work of those in finance and accounting? Read about current hiring and salary trends, gaining invaluable insights to help you design competitive compensation packages for new and existing professionals.