September 15, 2023
Determining fair compensation for your team is no small feat.
It can feel like juggling competing priorities of attracting the best talent, covering your business’s back, and ensuring you get an ROI.
It’s a balancing act my clients struggle with all the time, which is why I developed the Employee Cost Calculator, a tool that can help you nail the ideal compensation package. I know, there are plenty of Employee Cost Calculators out there. But none of them are designed specifically for value-driven entrepreneurs like you.
Other cost calculators are essentially glorified number crunchers. They don’t take into account things like the value of non-monetary benefits and perks – which are your compensation package’s secret sauce for achieving a solid ROI on your new hire.
When you effectively align your business’s values with your employees’ values through non-monetary perks and benefits, you are creating a work environment that encourages people to stick around for the long-haul. And that’s just good business.
But first, you need to get friendly with your finances.
Before you can start thinking about a full compensation package, you have to get super clear about how much your business can comfortably shell out out-of-pocket. The Employee Cost Calculator will be your best friend for this.
That number becomes the foundation upon which you’ll add value-based benefits and perks to sweeten the deal and attract top-notch talent.
Benefits and Perks – AKA Your Company’s Personality
Benefits and perks aren’t just about the money; they’re a reflection of your company’s values and culture. Think things like vacation days, flexible hours, or remote work options. When you choose these wisely, and align them with what’s important to each individual member of your team, they become powerful magnets for the right people.
Aligning perks and benefits with the responsibilities and demands of a specific job is key. It’s not just about competitive pay; it’s about creating value through non-monetary contributions. This alignment helps you attract candidates who not only have the skills you need, but also vibe with your company’s values, making them more likely to stick around long term.
Take my own most recent hire as an example.
I recently onboarded a part-time employee whose skills I need inside my business. She was looking for a job, and I was looking for a person to fill this role. But it wasn’t just these two factors that brought us together.
It was how I aligned my business values with her individual needs and values, like:
Consistent pay: As a former freelancer returning from maternity leave, she wasn’t excited about the idea of searching for and nurturing leads. She was looking for consistency and reliability.
Flexible schedule: As a part-time employee with other commitments during the week, flexibility is important to her so she can get her work done on her schedule.
Remote work: Commuting into an office would mean more time away from her family, so a WFH position is incredibly valuable for her.
As an entrepreneur, one of my core business values is helping women thrive in their professional and personal lives. My business doesn’t require the job duties of this particular role be completed during specific hours or in a specific location, as long as the work is completed by our clearly communicated deadlines. Providing these two simple perks to support this employee and her values as a working mom comes at zero cost to me, but they are super valuable to her and her family, making me an attractive employee.
This is what I mean by non-monetary perks and benefits!
Determining employee compensation isn’t a walk in the park; it’s more like a balancing act. You’ve got to consider your business’s financial situation, your values, and your team’s needs.
The Employee Cost Calculator is designed to help you understand the value of perks that may not be an out of pocket cost, and will therefore help you build out the most attractive compensation packages possible. It ensures you attract and keep the right talent without blowing your budget. By aligning compensation with your company’s values, you’re creating a workplace that sets the stage for long-term success and happy employees.
Listen Now!
Links Mentioned
Click here to get your Employee Cost Calculator now.
