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.

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.

By optimizing your approach to compensation, you can go beyond pay and spur continuous improvement across your organization.

Here are the two main components you can use to design a fair, equitable compensation program.

Using goals the right way can benefit the entire organization and improve overall performance. Keep in mind, the goals must be measurable and attainable.