Posted 3 years ago - by

Are You Forging a Healthy Post-COVID19 Pay Strategy?

 

The economic impact that this current pandemic has had, has left companies with a higher degree of caution when planning compensation & bonuses for 2021 and onward. Some employers are now finding that they must consider certain things they may not have come across before.

 

This includes things like:

  • Salary reductions
  • Bonus-pay for front-line staff
  • Strategic compensation based on the ease or difficulty of recruiting new hires.

Be mindful of how your organization will need to grow and evolve in a post-pandemic marketplace when determining your pay strategy.

✓  Reevaluate present pay practices.

If you are paying employees based on job title and position, you might want to explore another approach. A good alternative to consider is competency-based pay strategy. Compensating employees based on their skill set, knowledge, and experience will encourage them to keep improving/learning new skills that contribute to the company. Employees who are driven to achieve this will be highly valuable assets in building a resilient organization.

✓  Strategize beyond pay.

This may include offering new types of benefits—in particular, programs that allow for more flexibility and security. Recently, the urgency for programs like FSA dependent care plans has been heavily discussed. The need some may have for them can possibly facilitate the return of your workforce. If programs like those are not feasible, increased scheduling flexibility for employees that need to manage child/family care, can be offered as an alternative.

✓  Plan for prolonged uncertainty

Uncertainty will be the most certain thing in the market for some time. With only six months left to the end of the year, leave some slack in your plan to account for all the changes to come in the latter half of the year. Or, having several options planned out when possible can also prove to be beneficial during this unpredictable time.

Plan for 2021 and beyond with experts who will listen to you and take the time to get to know your business. Find a reliable HR and payroll partner in Payroll Systems.

In addition to sound advice, we offer paperless employee onboarding of new employees, paperless benefit enrollment, timekeeping systems with companion mobile app, physical clocks, and customized job costing and labor distribution reporting.

Contact us to learn more about easily scalable solutions.

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.