It may seem to be a cliché, but there is an undeniable element of truth in the phrase “people are the greatest asset” of any company. The way in which employees are managed and treated directly affects productivity and nothing more so than the competitiveness of pay and available benefits.

Most companies offer a benefit package of some kind, but which are the most effective at drawing in the right staff and keeping them there? Labour turnover in the UK during 2002 averaged £4,301 per leaver, many of whom moved onwards to roles that provided more competitive pay and an appealing benefits package.

A Unique Benefit
The world famous Starbucks Coffee Company puts part of its amazing growth speed down to its competitive and unique benefits package. Two-thirds of the company’s work force are part time, and enjoy benefits such as medical coverage, stock options, paid holiday and a retirement plan.
Uniquely, Starbucks also includes a “coffee benefit” in its package, which provides every employee with a free pound of coffee beans each week. Although a small addition, it is this distinctive twist in their benefit package that distinguishes Starbucks from its competitors, and keeps its employee turnover well below the average.

Starbucks HR vice president Bradley Honeycutt explains “We’ve had wonderful success attracting and retaining good employees… many employees come for the benefits—and stay for them. We believe our benefits have helped us grow”. It is no wonder then that Starbucks has featured in ‘Fortunes top 100 employers to work for’ for the past 6 years and placed an impressive 11th in 2005.

You Get What You Pay For
A great benefits package can certainly entice the best employees to certain firms, but without a competitive, justifiable salary they will eventually look for one elsewhere. Many companies today leave salaries open to variable amounts of negotiation dependant on the calibre of the candidate in question. Here are some tips for a successful salary negotiation:

• Know what your salary negotiation limits are. Base these on current salaries within the company, the current economic climate and profitability of the company.

• Negotiation is not about winning. If either party feels they have had to submit both will lose. Negotiation is about meeting the needs of both to the best degree possible.

• Make sure you know as much about the candidate’s recent salary and benefits as possible. This will give you some indication of what to expect during a negotiation.

• Consider that, if your salary is not negotiable (or even if it is) superior candidates will try to negotiate in other areas such as benefits and holiday allowance. This can also be used to your advantage if you cannot come to an agreement on the salary.

• Keep in mind that even if you are convinced the candidate will have a very positive impact within the organisation, you will have limits to abide by. You will regret violating your limits even if you have to start the recruitment process over as you will save yourself years of headaches and prohibitive costs.

Remember; with regard to negotiating with candidates always keep a clear idea of how much you believe them to be worth and what ‘value’ they will bring to the company. Try not to undercut or overpay, as both will have a negative impact on your business in the end.

You really do get what you pay for.

Ocean Consulting is a highly professional, privately owned, recruitment consultancy, specialising in Permanent & Contract recruitment within the commercial sector. With over 14 years recruiting experience within the senior management team, we focus on placing all disciplines from Receptionists & Administrators right up to Senior Manager / Director level positions within the Thames Valley area & beyond and have an excellent reputation gaining a high majority of our business through word of mouth. Why? We are very passionate about making a difference…it’s that simple

If you would like to know more about Ocean visit our website at www.dipintheocean.co.uk or reply to this e-mail and take@dipintheocean.co.uk
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