Hiring People_ Recruit and Keep the Brightest Stars - Kathy Shwiff [29]
The Skill-Based Model – Many companies are now compensating employees for certain work-related skills they acquire, or for being able to perform additional or more technical tasks. Once the employee has demonstrated a satisfactory level of competence, their base pay is increased. Used since the 1940s on assembly lines, when one worker had to step in for another, skill-based pay has recently been revived as downsized businesses attempt to cross-train workers.
The Share-and-Share-Alike Model – The ESO or employee share ownership plan is still something of a revolutionary notion, even though it came to light over 200 years ago in a Scottish industrial town. The premise of the plan is that all workers are partners in a concern. By turning employees into shareholders, a company increases their emotional investment in their daily work—and in the overall success of the organization. At certain firms, employees are encouraged to save a portion of their salaries, and then, at the end of a set time period, allowed to use the money to buy company shares at a discount. This type of plan, in which compensation is offered for measurable improvements, can also have an impact on safety and attendance records.
SOURCE: “Variable Pay Programs Provide Flexibility, Incentives” by Joan Lloyd, Joanlloyd.com (February 4, 1996); “Skill Based Pay: A Brief Overview” Effectivecompensation.com (2003).
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Benefits
A first-class benefits plan will make your company attractive to both top managers and the most skilled hourly wage earners. So before delivering your offer, make sure you know the specifics of your company’s benefits plan and mentally highlight its strong points. Then talk up its positive points and don’t mention what might be missing.
The most attractive health care plans are those that minimize a worker’s out-of-pocket contribution. Some large companies cover only about 80 percent of the cost of medical insurance for employees and their dependents, while smaller companies may cover all health insurance costs for employees, but not cover their spouses and dependents. Short-term disability coverage can be a selling point, since not all employers offer it, although many provide life and long-term disability insurance. Stock options or stock grants can provide long-term incentives to employees and can help keep valuable employees from leaving during a firm’s start-up phase.
There are also nontraditional benefits companies offer that make life easier and more efficient for employees. During your hiring interview, don’t forget to spotlight such benefits as onsite gyms, laundry rooms, massage rooms, hair cuts, car washes, dry cleaning services, dining facilities, commuting buses, concierge service, backup child-and adult-care services, half-day Fridays or permanent four-day holiday weekends.
If your firm offers other perks or programs—employee assistance programs (which covers everything from substance abuse programs to psychological counseling to legal assistance), discounts on company products, or the use of company cars—be sure to mention it to your candidate.
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THE BOTTOM LINE
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EMPLOYEE LEAVE AND THE LAW
Under the Family and Medical Leave Act of 1993, certain employers must give eligible employees up to 12 work weeks of unpaid leave during any 12 months for the birth and care of a newborn child, an adoptee, or a foster child; for the care of a spouse, child or parent with a serious health condition; and when the employee is unable to work because of a serious health condition.
The law typically covers employers with 50 or more employees and applies to workers who have been employed by the company for at least 12 months and have worked at least 1,250 hours during the 12 months before the leave starts.
SOURCE: “The Family and Medical Leave Act of 1993,” U.S. Department of Labor Fact Sheet No. 28, dol.gov. (December 5, 2006).
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