As companies adjust to a volatile economic environment and a talent-centric market, mid-sized companies are in a tough spot. As well as finding it difficult to offer the security and packages to candidates offered by large enterprises, mid-sized companies have grown too far to attract talent with the promise of outsized equity stakes.
So we put our heads together with leading HR information system (HRIS) HiBob to ask the question: how can mid-sized companies use compensation to set themselves apart from the competition, attracting – and holding on to – great people?
Full-stack compensation strategy
The answer became clear: connect compensation more intimately and directly to company culture. Enter our jointly-produced report on a new phenomenon for people teams: the full-stack compensation strategy. We’ve identified key steps to help mid-sized companies foster a great culture that uses compensation as a lever for engagement and motivation.
Frequency of compensation reviews
Some steps are quite concrete: for instance, increasing the frequency of compensation reviews. Did you know that just six percent of HR leaders conduct pay reviews twice or more per year? Conducting these reviews more often tells your team that they’re being looked after, and will prevent the feeling of stagnation that more employees are reporting.
Simplifying thorny processes like equity allocations is another step that can deliver results. If you know ahead of time what a candidate’s equity stake will be at a certain level and in a certain geography, you can offer refreshing clarity at the offer stage. (And if the company startup you’re competing against can’t be as clear, you have a better chance of convincing a high-impact new joiner to choose your company as their next step.)
A sync between equity management and a HRIS platforms
But you can’t do this without best-in-class software. A core component of the ‘Full-Stack Compensation Strategy’ is the tech tools that can power your new policies and processes. Modern HR systems like Bob connect with a broad range of products focused on specific jobs like payroll, recruitment, performance reviews, employee feedback and equity management.
Learn more about our equity management platform here.
By building out the range of tools that support the people, finance and operations teams, companies can build data into more decisions and more accurately measure the impact of their new approach to compensation. A simple sync between an equity management platform like Ledgy and an HRIS like Bob, for instance, can automatically cancel the vesting process for a person’s shares when they leave the company.
Being able to really take control of equity data prevents unnecessary human errors and saves considerable time for HR and people teams, helping them focus on higher-value work that helps build a great culture. And the whole team feels the benefit of richer equity data: better insights on their equity stakes means better education on share ownership across the company.
Commenting on the report’s launch, Ledgy CEO and co-founder Yoko Spirig said:
Interested in learning more? Download the report now.
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