How can you create a competitive compensation and benefits package for airline employees?

1 Assess your market position

Before you decide on your compensation and benefits package, you need to understand how your airline compares to other players in the industry and in the region. You can use market surveys, benchmarking tools, and industry reports to gather data on the average salaries, bonuses, incentives, and benefits offered by your competitors and peers. This will help you determine your market position and how you want to differentiate yourself as an employer of choice. You can also use this information to identify any gaps or opportunities in your current compensation and benefits structure.

2 Define your compensation philosophy

Your compensation philosophy is a statement that reflects your values, goals, and culture as an airline. It guides how you reward your employees for their contributions and achievements, and how you balance internal equity and external competitiveness. Your compensation philosophy should answer questions such as: What are the main objectives of your compensation and benefits program? How do you link pay to performance, skills, and competencies? How do you recognize and reward individual and team efforts? How do you ensure fairness and transparency in your pay decisions? How do you communicate and educate your employees about your compensation and benefits program?

3 Design your compensation and benefits package

Based on your market position and compensation philosophy, you can design a compensation and benefits package that suits your airline's needs and objectives. This package should include monetary and non-monetary rewards to motivate and engage employees, while also supporting financial and operational goals. Key components include base salary, variable pay, and benefits. Base salary should reflect the market value, skills, experience, and performance of employees, as well as the complexity and scope of their jobs. You can use salary ranges, pay grades, or pay bands to establish minimum and maximum salary levels for each position or category in your airline. Variable pay should align with strategic goals, performance indicators, and values while rewarding individual and collective outcomes. Performance appraisal systems, scorecards, or metrics can measure and reward employees' variable pay. Benefits should address the needs and preferences of a diverse workforce while complying with legal and regulatory requirements in your region. Surveys, focus groups, or feedback sessions can understand and respond to employee benefit expectations.

4 Implement and evaluate your compensation and benefits package

Once you have designed your compensation and benefits package, you need to implement it effectively and efficiently. This involves setting clear and consistent policies and procedures, communicating and educating your employees and managers, and ensuring compliance and accuracy in your payroll and administration systems. You also need to evaluate your compensation and benefits package regularly and make adjustments as needed. This involves monitoring and analyzing your internal and external data, soliciting and listening to your employees' feedback, and reviewing and updating your compensation and benefits strategy. By doing so, you can ensure that your compensation and benefits package remains competitive, relevant, and sustainable for your airline and your employees.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?