A compensation philosophy aims to ensure pay is market-competitive and aligned to the business strategy. To support these two factors, there are six components, or goals, of compensation philosophy.
Compensation Management Software can reduce the tedious labor of personnel-driven analysis, tracking and planning out of the process.
Here’s how you can set your Total Rewards Communication goals in a way that reflects your company objectives.
To be effective, every performance-based pay system must encompass a few key elements. These include clear objectives, a thorough performance process, and a tool to support your pay-for-performance initiatives.
The overarching objective behind your organization’s compensation management process is to pay your employees fairly without exceeding its budget. Yet, beyond this primary goal lie important pillars, each of which must be satisfied to achieve better bottom-line results for your company.
Merit pay can be an effective tool for improving morale, retaining your top performers, and driving loyalty. Yet, rewarding employees without a plan can have the opposite effect: it may demotivate employees and send your best talent searching for other opportunities.