3 Huge Reasons Why Small Businesses Need A Compensation Consultant

Posted on: 29 September 2017

Are you the owner of a small business? Are you looking to expand your market, starting by hiring more employees to handle the increased workload? If you're new to owning a business, it can be difficult to attract the right employees. Perhaps you've put an ad on multiple job websites and have even hired a recruiting company to locate employees for you, but you're still unable to locate employees who you feel will be right for your company. Your best option now is now to hire a consulting company to help you adjust your expectations and offerings. Some reasons why you should consider this include:

Salary expectations: Experienced employees do not come cheap. You may think that your offering is more than fair but not everyone may feel the same way. Employees who have been working in a similar field for ten or twenty years are going to expect a higher salary than fresh-faced young adults who barely know what they're doing. The consultation company will help you to come up with compensation strategies that are more likely to attract experienced employees and not just once who are freshly graduated from college with little to no experience.

Vacation time: Good compensation strategies also involve non-monetary compensation. There are employees who might be willing to work for a slightly lower rate of pay, provided that they get more time off for vacation or have more sick days available with which to care for their children. Without working with a consulting company, you might not realize that these are viable options. As a growing business, being able to compensate employees in ways other than with money will help to keep you within your budget while still being able to interest potential employees who have significant amounts of experience.

Bonus structuring: Companies that do well often have compensation strategies that include annual or quarterly bonuses for their employees. These bonuses aren't just for sales personnel, but also serve to motivate both office workers and production personnel. A consulting company, like Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc., will work with you to help you decide what sort of bonuses will be perceived as fair while still allowing your company to have a decent amount of profit. Although you might shy away from even considering giving away any of your profit, generous bonus packages can result in employees working even harder next year or next quarter, ultimately resulting in higher profits and faster growth for you and your company.