Does pay really matter? We’d like to think work motivation is about more than the paycheck. Sure, many people want to have a career where they can make a difference, find fulfilment, and develop professionally. There is plenty of emphasis in HR on company culture when discussing recruitment and retention strategies.
Agricultural employers reported in the 2022-2023 AgCareers.com Agriculture and Food HR Review they are using a positive work culture as the top method to compete against other employers.
If an employee feels they fit in, connects with the company’s mission, and finds the workplace positive, they are more likely to stay. However, staff can start feeling undervalued if the compensation isn’t competitive or they receive insufficient pay raises — that is when a fabulous company culture alone won’t be enough to keep employees.
Compensation Spotlight
Pay is important to employees, and AgCareers.com heard it directly from the source. When we surveyed candidates and employees in the 2022 Benefits Survey about what factor had the most influence on their choice of an employer, the salary/compensation package was at the top. We also asked participants what would influence them to leave their current job for a new one, and you guessed it — higher compensation was the most popular answer.
Dealerships need talented employees that are invested in the business. Likewise, employers need to invest in their employees to recruit and retain them. When asked what HR matter their employer should concentrate on, our followers responded that pay/salary was at the top of the list, boasting a double-digit lead over professional development, company culture, and diversity, equity & inclusion.
The tight labor market has resulted in various compensation issues that employers must tackle head on. Agricultural employers surveyed for the AgCareers.com HR Review were most concerned about rising wage rates. The second most common compensation concern was how to quickly adapt to changing market rates.
There are obvious positive implications for candidates and employees as more organizations navigate the market with salary increases. Looking back at the last year, more employers indicated salaries had increased compared to the prior twelve months. The likelihood of salary increases in the next year is also rising; in previous years, employers have been modest with their salary increase budget predictions.
Compensation is also the top priority in employers’ recruitment strategies. Agricultural employers participating in the HR Review noted that their number one method of attracting new talent was a higher starting pay for new employees.
Beyond the reoccurring paycheck, allowances and reimbursements are a valued supplement to an employee’s income. Agricultural employers report that the most frequent reimbursement offered is for certification & training expenses, followed by a cell phone reimbursement. Tuition reimbursement and vehicle allowances are also common supplements. Looking specifically at allowances impacting the recruitment process, over 20% of agricultural employers paid relocation expenses.
Competing with Compensation
So, you want to compete and ensure you’re not only hiring but also keeping the best talent? Salary benchmarking allows employers to see how their pay measures up to others. AgCareers.com offers the Compensation Benchmark Review, a trusted, confidential salary benchmarking tool exclusive to the agriculture and food industries. This tool allows equipment dealers to compare their compensation programs with other agricultural employers and equipment dealers by variables such as location or level of employment.
To find out more about the AgCareers.com Compensation Benchmark Review, visit: https://www.agcareers.com/compensation-benchmark-review/ or email compensation@agcareers.com
It pays to review your employees’ compensation.
BONNIE JOHNSON has more than twenty years of professional marketing experience, including nine years with AgCareers.com. As a marketing specialist, she supports the AgCareers.com team and brand through marketing and communications efforts. This includes internal and external communications, email marketing, company branding, market research, and data analysis. Please send questions and/or comments to bonnie.johnson@agcareers.com.
