Salary policy: strategies for equity and talent retention

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As competition in the job market grows, companies are increasingly making efforts to attract and retain the best talent. In this scenario, salary policies have become an important differentiator for employer brands.

After all, in addition to the benefits that the organization provides, good pay remains essential for good professionals. In addition, a good salary policy also shows that the company recognizes and wants to retain its talents .

By continuing to read this article, you will learn about the definition, impact and strategies for making the salary policy a great attraction for the entry of new talents, and for the retention of those who are already part of the team.

What is wage policy?
We can understand salary policy as the set of actions and strategies that aim to encourage and remunerate a company's employees through financial rewards.

One of the biggest and most important goals is to boost productivity, attract and retain talent.

The main impact of salary policy on employee satisfaction and retention is that employees feel more valued and motivated. This is because they perceive that the company cares about their financial well-being.

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How to set up a salary policy in the company?
Market research
To create a salary policy, the first step is to conduct market research. This research should collect data on the salaries and benefits paid by other organizations of the same size and segment in the region. This information will be used as a basis for establishing salary parameters, ensuring that the company is competitive in the market in terms of remuneration.

Assess the available budget
The next step is to assess the available budget that the company can count on to pay its employees . The proposed salary policy should be balanced between the market reality and the financial possibilities verified with the help of the finance department.

This makes it easier to find alternatives to make your salary policy more attractive . If it is not possible to offer a competitive salary, the solution will be to invest in benefits and learning and development opportunities.

Define the criteria
Once the data has been collected, it is time to define the criteria for implementing this plan. It is important to remember that the definition of these criteria must take into account the provisions of labor laws, professional associations and collective bargaining agreements.

Document the process
Now, with everything researched, verified and agreed upon, it is time for the company to document this entire process and pass it on to managers so they are aware and inform employees of all the details of what was stipulated.

After all the steps have been followed, it is time to put the company's salary policy into practice to attract new talent and retain those who are already part of the team.

Examples of current wage policy
Salary policies can vary greatly from company to company, depending on industry, size, location, and strategic goals. Here are some examples of approaches and components that might be part of a salary policy today:

Salary policy based on salary ranges
Companies set salary ranges for different positions or levels, with a minimum, average, and maximum salary for each range. This is why salary ranges are reviewed annually based on inflation, market conditions, and company performance. Employees may receive raises within the range based on performance reviews.

Variable remuneration policy
Employees receive annual or quarterly bonuses based on individual and/or company performance. In industries such as sales, a significant portion of the salary may be made up of commissions based on sales made. For example, profit-sharing programs or company stocks are used to retain key talent.

Benefits and total compensation policy
The policy may include a benefits package that employees can customize according to their needs, such as health plans, private pensions, food vouchers, among others.

The company highlights the total value of the compensation package, including base salary, bonuses, benefits and long-term incentives, to attract and retain talent.