The success of an organization is largely dependent on its executive leaders. Unfortunately, not all corporations have the capital to offer competitive salaries that entice highly qualified personnel. In such cases, companies can greatly benefit from the corporate financial advice of a professional who can help devise a strategic executive compensation package.
Professional compensation should fit the needs of both the employer and employee by combining various forms of financial and personal advantages. Contrary to popular belief, offering the highest salary is not the only way to secure top talent. In fact, there are several factors that could make your executive compensation package more attractive while cutting costs on salary payments.
Are you looking to hire an exemplary executive team to further the success of your organization? At Miser Wealth Partners, our experienced financial advisors offer actionable corporate financial advice to help you recruit and retain personnel through strategic compensation packages.
Align salary payments with organizational goals
Emerging organizations often make the mistake of offering exorbitant salaries to candidates based on their general success in the industry. Well an individual may be an asset to one company, it is important to assess their specific skill set and determine whether or not they will be able to add the same value to your organization. The salary that is paid out to each executive staff member should be considered an investment in the financial future of your business. For example, if you own a talent acquisition company, securing an executive with a long list of contacts in the industry will undoubtedly result in a high return. Therefore, it would be sensible to allocate a large amount of funds to this individual’s base salary.
Offer an attractive benefits package
Experienced executives who have achieved great financial success in their careers may be more drawn to an impressive benefits package as opposed to an increase in salary. As professionals advance in their careers, they typically become more interested in company objectives, their work environment, and overall quality of life. Benefits may include a secure retirement plan, family health coverage, paid vacation time, and access to equipment such as a company vehicle. Creating an affordable, yet desirable benefits package is an excellent way for organizations to cut costs when recruiting new executive team members.
Create periodic incentives
Investing in an executive worker is a high risk, high reward decision. The value that your executive team adds to your company is entirely dependent on each individual’s willingness to apply their expertise to the role. The best way to ensure a high level of productivity is to create periodic financial incentives that give executives the opportunity to increase their income while actively contributing to the success of the organization as a whole. Granting the possibility for executives to receive bonuses on a regular basis is a highly attractive feature that will unquestionably grab the attention of desirable candidates.
Offer stock options in lieu of a higher base salary
Another way to secure top talent without sacrificing a large amount of your organization’s capital is by giving executive staff members the opportunity to purchase shares in your company at a reduced price, or to receive shares in the form of a bonus in the event that certain objectives are met. This is simply another form of compensation that secures the financial future of executive personnel in a way that is more manageable than paying out large sums of money on a regular basis. Experienced executives tend to be well-versed in stock options and see tremendous value in obtaining shares.
If you require financial corporate advice, schedule an appointment with us today.