It is surprising that less than 50% of companies have an employee compensation plan. A basic strategy can help you employ and retain the best talent in your field, while making sure that fair compensation is put in place regardless of the demographic characteristics.

Here are three reasons to pay more attention to this:

1. Keep a competitive edge for recruiting

You don’t want an employee who is only motivated by money, but you do want your job offer to be competitive with other compainies. The two most common reasons potential employees decline a job offer is that compensation and benefits were not in line with their expectations.Compensation shows the employee that you value them, and indicaties how fairly they will be treated as an employee.

2. Compensate your companies top performers

If you want to improve employee retention, keeping a fair compensation plan can help keep your employees satisfied and engaged. Reviewing your business data on a monthly basis ensures thatcompensation and bonuses are competitive against other company offers, which ensures that your top performers don’t leave your company for another offer.

3. Offer fair pay to avoid compensation discrimination

One option is to set competitive pay ranges for job levels or positions, you can adjust each employee’s salary based on experience, skills, education, and performance. A basic development program can help your employees earn salary increases as they progress, while top performers can be promoted when they reach the top of their pay grade.

So make sure that your employee compensation strategy is updated regularly to ensure that you have the competitive edge over what your competitiors are offering employees in terms of benefits, compensation and salaies.