Employee compensation is likely the largest part of your overhead. How can you possibly increase it? Sometimes, you can’t afford not to. In fact, if you’re looking to attract and hire top performers, the benefits could actually outweigh the costs. Here’s a look at a few reasons why you should consider it:

To get the most talented people.

With a low unemployment rate, it’s a candidate’s market out there. Not only that, but top-quality ones can seem few and far between. So you when you find a professional who seems like an ideal fit in terms of skills and personality, then it could be well worth it to offer higher pay. They, in turn, can significantly impact your bottom line in a positive way.

To increase retention.

When employees are well paid, better than the competition, they’ll want to stay on board for the long haul. If there’s not a lot of employee churn, then it’s going to cost you less over time in recruiting, hiring and training. Not only that, but the longer an employee is with a company, the more value they can often add thanks to new skills and a better understanding of big-picture goals and strategies.

To increase productivity.

With a better paid A team on staff, your company is going to experience higher levels of productivity. These are people who are top performers and they’re more motivated to get the job done and help your company grow, knowing they’re being paid more to do it. In addition, when word spreads of higher wages, it’s going to increase your applicant pool and enable you to replace those who are underperforming faster.

To improve quality of life.

If you don’t pay employees enough, they’re going to be stressed about money all the time. This, in turn, can have a big impact on performance, not to mention absenteeism and retention. These can actually cost more to fix than the expense of increasing wages. So even if you don’t pay more than your competition, make sure your wages are at least in line with them.

The thought of increasing wages can be painful for every company. And it could lead to lower profits for a time. However, considering the contributions top-performers can make, the return on investment over time can certainly be well worth it.

Want professional help attracting talent to your team?

Connect with the staffing experts at Murray Resources today.