It’s no secret that top talent expects to be paid top dollar. Even with a developed recruiting program, strong company culture and great work-life balance, it’s difficult for companies to attract and retain the best employees without an all-inclusive compensation strategy. Add in the combination of high inflation, talent shortages and the Great Resignation, and we’re left with a hyper-competitive labor market.

Unlike 2020, employees now have the upper hand in the proverbial “seller’s market.” In an unprecedented time for attracting and retaining talent, CEOs and CHROs must think outside of the box to motivate and retain top performers and explore new ways to increase the value of total compensation offered.

Base Salary vs. Total Compensation

Before making any changes to your compensation strategy, it’s important to first understand the difference between base salary and total compensation.

Base Salary — The amount per hour or year an employee is paid. This is the figure that appears on the employee’s paycheck. This number does not include bonuses, benefits or any other perks.

Total Compensation — Everything an employee receives in exchange for working for your company. This includes a base salary, bonuses, incentives, benefits, on-site amenities and any other perks you offer. Some typical benefits included in total compensation are:

• Health insurance
• Vision & dental insurance plans
• Disability & life insurance policies
• Retirement plans
• Performance bonuses

Creative Ways to Boost Total Compensation

Beyond base pay increases, there are many unique ways that organizations can add additional value to their total compensation package and reward and retain key employees. The following are just a few.

Employee Stock Ownership Programs (ESOPs) — ESOPs come with several benefits for employees and employers. They could very well be claimed as the most important form of remuneration for employees of any organization. From a company’s perspective, they can be useful in maintaining the liquidity of the company. From an employee’s standpoint, it’s a reward for their loyalty to the company.

Paid Training Stipend — Companies that include a paid training stipend in their total compensation package show an investment in their employees’ career success. Additionally, offering training opportunities helps to upskill and develop existing employees so they can perform their jobs more effectively and become strong leaders.

Executive Bonus Plans — When it comes to retaining top talent, employers need to get creative with benefit offerings. Through a 162 executive bonus plan, companies can offer life and/or disability income insurance to their key employees.

Employer-Paid Individual Term Life Insurance — Finding a way to provide top performers with a valuable benefit — one that won’t be too hard on the bottom line and is easy to administer — could be an ideal solution to reward their contributions. With Focus 10 Life, a fringe benefit, non-voluntary and employer-paid program, 20 or more employees in full-time, white-collar occupations are eligible for guaranteed level premiums for 10 years.