According to research top talent in many UK companies are not happy and voting with their feet. This is despite the fact that many of them are highly paid on average £325,000 per annum and receiving a bonus of £100,000 on average. This just goes to show that money does not always motivate.
So what are the reasons why top talent are creating high turnover costs to organisations. According to research, top performers are unhappy with company pay structures, lack job satisfaction and training and development opportunities, They are also fed up with constant relocations which create job insecurity.
So as companies fail to meet the expectations of these top performers, often they fail to make the grade. Many companies feel that paying high salaries ensures high productivity and profits for them, but that is not always the case. Companies end up paying out huge salaries yet strategic business objectives and performance targets are not met, therefore, misaligning reward strategy to business strategy.
As an example, the financial benefits package of an executive is usually made up of salary, benefits, performance bonus, share options and car/car allowance as well as the standard pension, private health insurance and healthcare.
However, companies need to consult with the individuals concerned to ensure that the package is tailored appropriately meeting the needs of both the individual and the organisation. Job satisfaction and development needs need to also be incorporated so that the total reward package is strategically effective.
As with all reward solutions the total reward package for top talent needs to be fair, equitable, transparent and competitive. To get ahead of the game, companies need to be highly creative to determine reward solutions that will recruit and retain in the face of stiff competition.
Using the benefit package to incorporate different benefit solutions can make the world of difference such as paid sabbaticals with holiday vouchers or the opportunity to drive a high performance car on the open road for meeting company targets can be a huge motivator for certain individuals fostering high performance.
Other options could include flexible hours, extra days off, better parking and workspaces, publicly recognising top talent in announcements and share options.
The company’s talent gains the recognition and respect for a job well done and for the huge responsibility they carry to ensure the company performs well.
The company benefits by fostering high performance, gaining competitive advantage and addresses the huge skills shortage that exists in the UK
Offering stretching training and development opportunities can enhance job satisfaction. These usually highly educated top performers want to continue growing their skills through a range of options such as further academic qualifications, secondments and action learning opportunities. Likewise the company benefits from having top employees who are in the know with new ideas which help to stay ahead of competitors and avoid products and services becoming stale. Succession planning is ideal to pick out the talent pool for development.
When looking at relocating, companies should consult with their top talent to see if this is really necessary to move their top performers or could their roles be carried out in a different way eg incorporating flexible working opportunities including home-based working. This can benefit the company as well by not paying out huge relocation or redundancy costs to all concerned.