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How are organizations using HR analytics to increase employee recruitment and retention? Dr. Rigolizzo: Regarding recruitment, thoughtful data can reveal built-in biases that keep you away from qualified candidates. There are many ways to use it down to where recruitment dollars should go. Does it matter if we do an interview?
Align compensation and benefits policies with actual compensation during hiring, compensation changes, and benchmarking. For instance, knowing how to work out the compa ratio can help them determine if employees are receiving fair compensation. If it isnt, what changes can you make?
Together, they make up a total compensation package, which may include salary, bonuses, insurance, retirement contributions, and various other perks aimed at attracting, motivating, and retaining employees. This amount is negotiated during the hiring process and agreed upon before the employment contract begins.
Whether the recruiter lists the wage as an hourly, weekly, monthly, or hourly rate, candidates see it as the most critical part of any job offer. The traditional money-based programs, such as retirement benefits, were also important. However, you’d be hard-pressed to hire an accountant for minimum wage.
The compensation and benefits manager works with hiring managers, recruiters, and other Human Resources personnel to ensure that job offers are both based on market rate and have internal equity (an explanation is provided below). Your relationship to this midpoint is called a compa-ratio. Retirement plans.
As an HR leader for your organization, you know that employee compensation is not just something you determine when you hire a new team member and then forget about. In fact, the performance rating taken in tandem with an employee’s compa-ratio reveals a fuller picture. What is Compa-ratio? Indirect compensation. 875 x 100 = 87.5%
Editor's Note: Confused by the different figures coming out of salary budget surveys every year? Churn occurs among grade peers due to new hires, promotions, quits, retirements and reclassifications. New hires enter at lower rates. You don't want folks stuck at the entry compa-ratio forever!
It is a critical element in talent management, as it affects recruiting, retention, and operating budgets. Surveying employees to gather their opinions on compensation packages for areas of improvement can ensure employee satisfaction. Benefits: Employee benefits are perks that can be both monetary and non-monetary.
Compa ratio is one of those tools. While it is just one element to consider when making compensation decisions, understanding compa ratio and how to use it effectively can make a positive difference in your efforts to compensate your employees fairly and competitively. Why is Compa Ratio Important? Let’s begin.
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