In order for a business to remain viable within its industry, it must maintain a certain level of market competitiveness, not just in terms of the products and services offered by the company, but in terms of the remuneration options offered to its employees and the different perks that are included in the employee benefit package. It does not matter how competitive the product or service of the company is if the company is unable to keep any employees working for them due to offerings below industry standard.

Even if the company is unable to offer industry standard remuneration, there are still certain things that the company is able to do in order to remain a force within their field and retain their employees. Alternative approaches to addressing this particular financial concern of the company include offering better medical benefits, offering additional perks outside of remuneration, or offering an environment that serves to draw individuals to the organization. While these are not the only options that a company may opt to employ, a review of these three alternatives to fiscally matching industry standard rates of pay will serve to indicate how best the company is able to find alternative means of keeping their competitive advantage.

Offering better medical benefits, including health insurance, vision insurance, dental insurance, accidental death or dismemberment, and even short term disability insurances are means by which a company may retain its competitive advantage, working to prevent employees from leaving for another company that offers more. In determining the different types of insurance offered by competitors, a business may find a method by which it is possible to gain advantage over those competitors. If a competitor does not offer insurance, then an employee is more likely to stay with the company that does offer insurance, even if the rate of pay is slightly lower, due to the belief that insurance is necessary. In light of the Affordable Care Act, making health insurance mandatory, this becomes an even greater incentive than ever before, as individuals who work at a company that offers benefits do not have to deal with the healthcare exchange.

Another method by which employers can work to keep employees, even if they are unable to pay industry standard rates, is to offer additional perks that are non-salary oriented. A business may decide to buy lunch for its employees one day a week, may provide additional unpaid sick days, or may even decide to have a masseuse come in once a month to provide massages for employees. While these expenses may seem extravagant, there are many corporate discounts that a company can obtain from other companies. The amount that the company may opt to spend on the provision of perks such as these will oftentimes be far less than the amount needed to raise just one individual’s salary to industry standard. Employees are willing to stay with the company because they are being granted perks that they would not receive at other organizations, never stopping to think that if they were being paid industry standard, they would be able to provide themselves with all of those options and more due to the increased amount of funds that they would have.

The difference is that the employees do not have to take any action in order to get the benefits. They do not have to setup any appointments or call any restaurants; the employee simply shows up and is able to receive those benefits. This turns the service or good being offered as a perk to the employee by the company into one with a convenience charge, resulting in the company saving money on employee salaries while still gaining individuals with the knowledge necessary in order to complete the job to the best of their abilities.

A third option that may be employed by the organization as a means of working to retain employees, in spite of lower remuneration is to make an environment that is far more pleasing to work at then that of his competition. The employer may engage in this activity in a host of ways, from setting up Nerf gun tournaments within the office to engaging in activities like casual Friday or allowing employees to wear costumes to work on certain days. The manner of the enticement will depend largely on the type of work offered within the office. If the office is a travel agency, for example, employees may be allowed to wear garments that would be most commonly seen in the destination attempting to be promoted that month. If the office provides a service that caters to children, then employees may allowed to be far goofier than normal, far less conditioned to act in the manner traditional to a typical nine to five job. Regardless of the manner of enticement chosen, the allowance of employees to work in a place that they find enjoyable is a good enticement for those who are unable to pay industry standard rates.

There are many different ways that a company may decide to keep their market competitiveness other than offering top dollar salaries for the positions provided. The important thing to remember is that money, while a valuable enticement, is not the only reason that makes individuals wish to remain employed with a particular company. By taking this into consideration in designing the workplace and the remuneration options for each position, the company may work to ensure that it thrives without paying excessive overhead costs. These decreased costs may end up not only working to ensure that they are able to retain their market competitiveness, but, if done properly, may allow the company to exceed the profits of their competition simply by providing an enjoyable place to work.