Tips to Approaching Salary Increases with Your Top Performers

Firm Must Think in Terms of Retaining the Whole Person!

Research developed by the CPA Crossings Research Team - Kelly J. Waffle, Director, Research & Innovation, and Megan Nadzan, Ph.D., Research Administrator.

Overview

We continue with the series "CPA Talent Retention 2024: Keeping Your Best Performers Evidence-Backed Action the Profession Can Take Today." This series is action packed and full of helpful insights for keeping your best talent. We will continue to review the key survey findings of our two groups called the, "Career Changers Group" and "Current Talent Group" to look at whole person talent retention options.

The key survey findings uncovered that when employees leave, it is typically because of the aggregated effect of a number of factors. With less talent available to fill existing or new positions, firms must have a comprehensive strategy that enables them to keep more talent and handle more business opportunities.

Last weeks discussion introduced ideas for paying quality talent what they are worth. Feel free to follow this LINK for a quick refresher ... https://www.dhirubhai.net/pulse/pay-quality-talent-what-worth-expect-lose-them-cpa-crossings-llc-ndlte/?trackingId=755trLV0StOuojFGMbyhpA%3D%3D

In this weeks edition

Let's move into some helpful "Tips to Approaching Salary Increases with Your Top Performers," and cover direct compensation such as salaries, bonuses, reviews and much more as ways to help firms “retain the whole person.”

Tips to Approaching Salary Increases with Your Top Performers

When it comes to talent retention, increased financial compensation is a great place to start to ensure your top performers stay with your firm and continue performing at elevated levels. Here are a few tips to stay engaged with your top performers.

1. Be open, honest, and frequent with your discussions.

You shouldn’t wait to have discussions with your top performers once a year. Talk with them throughout the year about their goals and progress. This approach minimizes any surprises that often arise with an annual review. Also, let them know your intentions. Perhaps you are working on an out-of-cycle increase. Maybe you are looking at a special bonus. Tie everything back to performance.

2. Provide alternatives to higher salaries.

If you can’t provide a salary increase right now, don’t overlook other options, such as bonuses, lifestyle benefits (like memberships or reimbursements), flexible schedules, remote work opportunities, additional paid time off, and promotions. These options are appreciated and often reduce childcare and transportation costs or allow meaningful time away from the firm to occur. Younger and middle-aged employees show interest in capping working hours. Flexible scheduling options may be attractive to them as an alternative.

3. Conduct regular salary reviews.

At least once a year, compare your firm’s salaries and benefits against reference tools such as the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook. Also, talk with recruiters and conduct internal surveys. Market conditions are going to change salary expectations. You know your top performers are doing some research on their own.

4. Develop clear criteria.

Have several people participate in your evaluation process and criteria. You want to make sure that everyone involved in determining a possible salary increase is using the same criteria and process—thus creating checks and balances. This approach ensures that any personal bias is minimized.

5. Give them the big picture.

Give them facts and context that puts everything into perspective. Too often employees do not understand how skills and salaries are valued at a competitive level. Explain to them how decisions are made. This will help you be better prepared for a reaction, whether negative or positive. Top performers like to hear that management put time and effort into identifying and appreciating their work

Next Edition

Our next edition will release on Wednesday, July 17th, 2024 covering how "Firms Need to Shift from Charging for Time to Charging for Trust!"

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About the Research

In the full version of this white paper, specific data is included. The PICPA surveyed 449 accounting professionals in Pennsylvania. Of this surveyed group, 77% were between the ages of 25 and 44. Seventy-nine percent of those surveyed have been in public accounting between 0 and 10 years. We believe those within these age and experience groups represent practitioners most likely to consider leaving a firm or the profession. Over 50% of the respondents identified as being “male,” with 47% identifying as “female,” and 1% preferring not to answer.