how to build a competitive compensation strategy.

​The current climate presents unique hurdles for both those hiring and those seeking employment. Why? The call for digital and AI capabilities is soaring across the operational and professional talent streams. Hybrid and gig work is burgeoning, as new sectors are starting to emerge in these disciplines.

​Employers of all sizes are intensifying their focus on talent strategies, particularly compensation strategies to navigate this dynamic business economy. That means, your compensation strategy must not just clarify the pay structure, but also expand into employee wellness, hybrid work and flexibility.

As you steer towards rapid growth and scalability, your reliance on talent becomes increasingly crucial. Exceptional talent is your undeniable growth level. However, how can you build a workplace that inspires and retains this top-tier talent? Hence, the challenge is not just attracting great talent, more importantly, retaining it with a well-advised talent strategy.

​Our 2025 Randstad Employer Brand Research elucidates shifting employee priorities. 70% of the Canadian workforce values job stability. That said, work-life balance dominates compensation in the Canadian talent’s priority list. What measures are you implementing to attract and retain the best talent? This data strengthens the need for you to develop a compensation strategy tailored for the diverse needs of your workforce, while also being mindful of work-life balance.

how can a poor compensation strategy increase employee turnover?

Salary and benefits are rudimentary to why employees choose and stay in their jobs. An loosely built compensation framework can increase disgruntlement in your workforce, by rising turnover in your workplace.

The answer lies in balance. You must develop in-house expertise that can offset economic volatility with a strong workplace culture. And, a sensible, yet robust communication pipeline is cardinal for a stellar workplace culture.

Having said that, non-monetary benefits can’t outshine the weight of a clever compensation structure. Salary is still, a critical piece of the talent puzzle. If your compensation strategy falls behind market standards, you will witness increased employee attrition and lowered employee satisfaction.

The primary and most evident indicator that your employee compensation packages fall below market standards is the swift departure of your employees when they encounter better-paying job prospects.

Thankfully, there’s room. All that’s needed is; you must be willing to lead workplace transformation aided by an employee-centric compensation framework. A strategy, that assists your growth vision and backs growing employee expectations. Explore these effective tips to foster a dynamic and motivated workforce.

1. promote open communication.

Like a recent Harvard Business Review article underscores, effective communication is the bedrock upon which high-productive and efficient teams thrive. This is particularly true for today’s era or remote work and a scalable collection of communication tools. Why? Remote work exacerbates challenges such as confusion and connectivity loss.

To combat this, HR teams and leaders should prioritize open discussions about compensation. Be transparent about changes in salary structure. This helps foster trust and promote an engaged workforce.

​Furthermore, talent devotes particular attention to your organization values and how your their salary package supports it. Workplace culture is essentially the manifestation of core values. For instance, teams rewarded by you take notice of how critical committed employees are for your growth. In essence, compensation and workplace culture are tightly knit, to serve as the basis for a thriving workplace.

2. develop a reliable and effective compensation review framework.

Employee compensation reviews are often among the most difficult discussions you’ll have with your staff. Nonetheless, they’re epoch-making events that build strong connections across org hierarchies. In succession, your organization stands tall with employee-centricity as the central pillar for business growth.

Investing in employee communication training equips your managers and team leads to resolve sensitive challenges with logic. Moreover, the management and subordinate layers can enjoy a strong working dynamic. How is this beneficial for your workplace culture?

​It fundamentally changes how tough talks like appraisal reviews are viewed and executed. Additionally, grasping industry compensation trends helps you create a competitive compensation framework and reduce employee turnover.

​3. make your employee training system adaptable.

AI is constantly making amends to the ‘most in-demand skills’ list. This trend mandates not just you, but every employer, to curate and offer an expansive and elastic learning and development template. Simply put, you’re recalibrating how you upskill your workforce.

​Our 2026 salary guide highlights that 79% of engineering and 72% of finance workforce in Canada dismisses a job offer if it fails to provide them a chance to future-proof their skills. Consequently, AI and automation grow to be a dominant factor in determining how you attract and keep premium talent for the long-term.

4. comprehensive pay reviews augment employee retention.

Running your compensation strategy through multiple test runs is not a bad idea. Sure, it’s unexciting and tedious, but instrumental in registering the current needs of your workforce. In addition, compensation reviews are the hidden influence in promoting greater retention in your workplace. How?

Regular salary reviews give you a sneak peek into areas of improvement, when it comes to functions such as HR and operations. Complementing this, you gather advise and feedback from employees across teams, which becomes the source of developmental measures.

Furthermore, when you communicate how you plan to re-equip your employee and compensation policies in alignment with your employee needs, workplace trust doubles and your employer brand becomes more authentic.

craft your compensation strategy even before hiring your workforce.

Digital job boards and professional social platforms have empowered today’s workforce with in-depth knowledge of the talent market. Top-tier candidates seek employers who value their unique skills and reward their uniqueness with competitive salaries.

To attract such talent, develop a competitive compensation plan before you start hiring. This first conversation with potential employees will signal your commitment to valuing their contributions and supporting their career growth.

Attracting and retaining top talent involves balancing competitive pay with the risk of settling for less qualified candidates. Your compensation strategy is a reflection of your employer brand and dedication to cultivating a workforce that propels your business's growth and global expansion.

Leverage our 2026 salary guide, a potent instrument detailing compensation data, to develop a comprehensive compensation plan that enables you to build strong and lasting employee relations. Start a conversation with our talent experts to perfect the compensation planning exercise, by aligning salary structure with your growth needs.