01 Nov 5 Reasons to Rethink Your Compensation Administration
Many organizations need to review their compensation administration practices from time to time. While compensation isn’t the only motivator you can use to drive employee performance, it is an important one. Here, we take a look at some reasons why you might want to rethink your compensation planning processes:
Align Employees With Business Objectives
According to The HR Digest, aligning employees with business objectives is one of the most important functions of an effective compensation plan. When you structure your compensation plan to strategically reward the behaviors that are most important to the success of your organization, you’ll be able to spur growth on both a personal and company level.
Attract In-Demand Talent
If there’s a particular skill set you need to attract, understanding where your pay levels fall compared with the rest of the market will help you uncover new insights. Based on these findings, you can create a compelling employee value proposition to attract the in-demand talent your organization needs.
Gear Up for Growth
Zachary Weinberger of Remuneration Resources explains in this article that cinching up compensation prior to moving to new markets is essential to executing a successful expansion. Pay practices may differ significantly in various locations, so performing market analyses is one useful tactic that can help you prepare.
Retain Top Performers
Total compensation extends beyond salary alone, and includes elements like rewards and benefits. In order to retain your best employees, you must consistently work to provide them with the compensation factors they value most. Thus, if you haven’t looked at your pay administration practices in a while, it may be prudent to do so before your best talent seeks out a better employee value proposition elsewhere.
Do you have a compensation strategy in place to help you navigate changing DOL laws and similar regulations affecting pay? If not, now is the time to prepare one. Failure to adopt your pay strategy to new regulations puts you at risk of non-compliance, which could have serious, far-reaching implications.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Compensation Management Software, COMPview, click the button below!