Overview: One of the greatest reasons for employee turnover concerns actual or perceived disparity between an employer's compensation system and the average compensation available within the marketplace. Accordingly, compensation is an essential component of an effective retention strategy and employers need to design compensation systems that make them "employers of choice" regarding their particular total rewards packages.
Compensation planning includes the consideration of the following components of a total rewards system: base salary; bonus percentage; merit increases; stock awards; defined contribution pension; 401(k) plan matching and vesting; paid time off or vacation policies; and available insurance coverage and employer payments. In addition, certain policies and practices may be very attractive to workers, including flexible work arrangements or alternate work schedules.
Using a compensation benchmark service may allow an employer to better assess their competitiveness in the labor marketplace.
Trends: Recently, the Office of Federal Contract Compliance Programs (OFCCP) has been very active in its enforcement initiatives regarding compensation disparities within organizations. Federal contractors should be mindful of their recordkeeping and reporting obligations in the event of an OFCCP audit.
Author: Marta Moakley, JD, Legal Editor
Updated to remove December 1, 2016, overtime requirements that will not be implemented or enforced. .
This How To details the steps a prudent employer should take when managing contingent or temporary workers.
An employer may use this checklist to develop and implement a succession planning process.
An employer may use this survey when considering initiating a structured succession planning process. Having input from key stakeholders and parties involved in the process has several potential benefits for the employer.
The Model Succession Plan is designed to help a user (often HR) document a proposed succession planning process for senior management (CEO) and, where relevant, Board of Director approval.
One of the most challenging aspects of staffing a productive and profitable organization concerns striking a balance between employee compensation costs and fulfilling client expectations. Often, an employer strikes this balance by increasing staff on a seasonal basis - especially in industries such as hospitality or retail.
This How To details the necessary steps employers must take to develop a succession plan.
HR guidance on the importance of proper compensation planning and designing effective compensation systems.