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.
By optimizing your approach to compensation, you can go beyond pay and spur continuous improvement across your organization.
There are a few key strategic elements which must first be in place. Here are the preliminary steps in building a solid total rewards design.
