Let's Talk Business: Creative Compensation
Compensation is typically among the first things potential employees consider when looking for employment. When it comes to employee compensation, most business owners are busy asking: "What do I have to pay?" A better question might be: "What do I want my compensation package to say?"
Hobby Lobby took the world by surprise when they announced their latest minimum wage update of $18.50 an hour. In addition, Hobby Lobby also offers an extensive benefit package that goes beyond the expected insurance, 401(k), and vacation pay.
Hobby Lobby has a long track record of taking care of their employees. In 1998, they made the decision to close their stores on Sundays, and at 8 p.m. the rest of the week, to provide employees time for rest, family and worship, according to the founder and CEO, David Green.
Whether you realize it or not, compensation packages say a lot about your company.
Child care and health benefits say that you value family. Giving longevity bonuses for employees on the anniversaries says you value employees who stay with your business. Throwing a party at the end of your business's busy season lets the employees and their families know that you appreciate it when they go the extra mile.
No matter what compensation elements you use, they all carry a message. After all, for employees, compensation is the equivalent not to how they are paid but, ultimately, to how they are valued.