How to Develop a Compensation Strategy
Author: Lisa Hylton Costa
A well designed and administered compensation strategy is important to maintain compliance with employment law, but also to stay competitive in the race to become an employer of choice. Organizations should consider managing compensation effectively a high priority.
It sounds simple - employees must be appropriately compensated for their skills, experience and contributions to organizational success. However, there are multiple elements involved in organizing employee compensation procedures and practices, and each is vital to the success of the compensation strategy.
Compensation is a complex subject requiring a thoughtful and data driven approach. To develop a compensation strategy, an organization must consider a number of things including ensuring compliance with various employment laws, determining a budget and remaining competitive in the marketplace. The compensation strategy must also be able to adapt to meet changing needs and continue to support organization objectives.
This How To reviews the basic steps and considerations involved in creating a compensation strategy that effectively serves an organization. A thoughtful and organized approach can help promote successful recruitment, excellent job performance and retention of talent.