It Pays to be Competitive: How Offering a Competitive Salary Can Increase Your Profits

September 10th, 2012

The adage is mostly true: you really do get what you pay for. But are most business owners and managers translating this knowledge to their payroll? Maybe not–and that could be the reason for increased turnover, lower job satisfaction and decreased productivity. It really is worth paying for quality talent, and doing so could save your company big money in the long run in three main areas:

Healthcare. Job satisfaction is associated with better health, according to data recently obtained by Aflac. In this study it was found that employees whose employers offered wellness programs not only had a substantially higher rate of job satisfaction, but they also feel more positively about their employers and feel more protected. Employees in better health are less likely to exacerbate the health care afforded to them, thus decreasing healthcare premiums for the company overall over time.

Recruitment and training. Employee retention via salary could be the easiest way to shave vital dollars off the budget: nearly half of all employed adults are “at least somewhat likely” to look for new jobs (according to Aflac). If your employees are pleased with their benefits, and subsequently the company, the turnover rate in your office will decrease, and your costs for candidate recruitment and new employee training diminish.

 

Productivity. Gallupdata indicates that there is a connection between workers who report that they are “highly satisfied” with their jobs and their productivity: the poll shows that there can be up to a 50% increase in productivity in workers who are “highly satisfied.” If high job satisfaction increases productivity, profits will follow a similar trend. With companies facing the difficult facts regarding time theft, eliminating unproductive habits in employees is a boon to any budget.

Paying your employees a competitive salary will benefit your company exponentially. To get started finding candidates in your area who would be great fits for your company, contact us today and see how easy it can be to hire capable, qualified employees.