There’s no denying that there’s quite a conversation going on in the United States right now regarding pay. While others are spending their time discussing minimum wages for workers- including Amazon that just recently raised their minimum wage to $15/ hour- we’re more concerned with why a leadership team deserves to be compensated differently and how to do so without breaking the bank.
More Responsibility
It really isn’t rocket science- on a routine basis the people that make up your leadership team are responsible for more than an everyday employee. This is not to say that your other employees don’t earn their pay, but the fact remains that their burden of responsibility is far lower than supervisors, managers and CEO’s. There has to be enough incentive for someone to want to take on the extra tasks, paperwork and decisions- otherwise, why would anyone vie for the position in the first place?
Pay Them to Keep Them
One of the biggest mistakes companies can make is assuming their employees will stick around no matter what. It’s true that today’s generation of Millennials do seek out employment for reasons outside of compensation exclusively, but that still doesn’t mean they won’t be tempted by another equally impressive company offering more money. To keep the leaders that are fundamental to your success happy- and around- pay them enough to close the gap of opportunity elsewhere.
Earned Bonuses
Anyone in a sales position knows that Key Performance Indicators (KPIs) are crucial to driving results. By setting up a bonus structure that only pays out when measurable success has been achieved, both the company and the employees benefit. For leaders, KPIs can be given for the success of their whole team, ensuring that they are actively working towards helping everyone within the organization accomplish more on a daily basis.
Out-of-the-Box Perks
While of course 401ks and health benefits don’t directly help pay the bills, compensation doesn’t always have to be in the form of money. With a higher base salary for your leadership team already established, the following perks are great ways to additionally motivate and reward employees of all levels:
Company Equity: Difficult but doable (especially for the employee that values ownership)
Fitness Memberships: To help them better themselves without coming out of pocket (and healthier people tend to mean less sick days. Hello productivity!)
Travel Reimbursements: Commutes, parking expenses, bridge tolls, etc.
Flexible Schedules: Allowing teams to work from home, saving time and money on travel, child care, etc.
Paid Volunteer Time Off: For those that value giving back to organizations important to them.
Tuition Reimbursement: To help alleviate the financial burden of past college expenses or current professional development.