Compensation Checklist for Manufacturing Firms Across Ontario

Why is A Good Compensation Strategy Necessary?

A well-thought compensation policy helps the management in creating happier workplaces, attracting top-tier talent, promoting employee retention, and improving the brand image of the company.

Appropriately-paid employees feel content that their value addition to the company is appreciated. This leads to a rise in morale and interest to come to work. Moreover, bonuses and rewards encourage employees to perform and deliver better, which increases overall productivity.

Recent Market Trends Affecting Compensation Strategies

  • The Pandemic and its after-effects have changed job expectations and made people comfortable with new concepts like remote work.
  • The increasing use of automation, AI, Machine Learning, Virtual Reality, etc. (Industry Revolution 4.0) has widened the skill gap and increased the fear of unemployment.
  • The global economy is undergoing a raving change. Inflation cries are everywhere.
  • The older workforce, which is the backbone of traditional manufacturings, is retiring.
  • The younger workforce has different career and growth aspirations.
  • Combined together, the above factors can lead to an immense shortage of talented staff at your manufacturing workplace. To combat these effects, you can work upon various ideas and policies. At the top of this list is crafting an extensive, customized, and competitive compensation strategy plan.

    Providing apt in-hand salaries is an essential step, but you should plan your offerings beyond it. Let’s explore a few market-popular options that you can pick upon and include in your strategy.

Ultimate Benefits and Perks Checklist

Benefits and perks are crucial components of any company’s offerings and directly affect the quality of hire and retention numbers. Hence, your package should include relevant and helpful benefits that add value and enhance your employee’s work experience. Here’s a list of the most common benefits being offered by manufacturing companies in 2022:

  • First & foremost, Competitive Salaries
  • Suitable Daily/ Hourly Wages, considerably above the minimum wage line
  • Referral Bonus, Retention Bonus, Productivity Bonus
  • Retirement Schemes
  • Remote or Hybrid Work Arrangement (if possible for certain job roles)
  • Well-being Initiatives and Aids
  • Career Advancement Training & Growth Opportunities
  • Re-skilling & Up-skilling Programs
  • Benefits for single parents/ working mothers/ pregnant women
  • Additional Paid Leaves (on top of vacation breaks, paid holidays, sick leaves)
  • Flexible Work Hours
  • Shared Work Shifts
  • 9-Day Fortnight
  • DE&I policies

Note that the above is neither an exhaustive nor a necessary list.

How you should approach your compensation strategy is a very subjective and internal decision. It varies considerably across countries, industries, demography, etc. Hence, before updating the compensation policies at your manufacturing, you should conduct thorough internal research.

Moreover, instead of a “one-fit-for-all” approach, you should try to mould and customize the packages for each employee based on their priorities, skill level, growth aspirations, background, etc.

PS: If recruiting skilled talent is proving to be a daunting task for you, we are here to help.

Over the last 18+ years, M&M has proudly helped dozens of manufacturing firms across Ontario with their staffing hassles. We continue to remain the #1 reliable talent supplier for our clients.

If effortless recruiting is what you’re looking for get in touch today!