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Compensation Insights

Maintain and Communicate a Competitive Pay Philosophy

Developing a formal compensation communications program provides employees with an understanding of why pay decisions are made.

Only 36% of employers have a formal compensation communications program, according to an HRsoft poll. However, this is something all organizations should have, because a compensation plan is only effective when the workforce understands it.

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Tags: compensation, employee compensation, retention

Linking Compensation and Performance Management

 Performance Impacts Pay

In our previous posts, we covered compensation principles that help ensure your company’s pay strategies produce the results required and shared an example you compensation policy statement. Here we discuss the vital connection between pay and performance.

The overarching goal of the compensation strategy is to ensure an organization has allocated the money necessary to motivate the performance needed to achieve the business strategy. To that end, compensation should also tie into the overall performance management strategy.

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Tags: compensation, employee compensation, retention, performance management

A Sample Compensation Philosophy

 

In our previous post, we covered compensation principles that help ensure your company’s pay strategies produce the results required. This example can help you write a compensation policy statement for your organization.

According to an HRsoft poll, 60% of organizations have a written compensation policy statement. For those who do not, reviewing examples may provide inspiration for developing a compensation philosophy that reflects a company’s business goals and corporate culture. Here is one sample of a compensation philosophy to review:

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Tags: compensation, employee compensation, retention

Compensation Principles for Effective Pay Strategies

In Part 2 of our multi-part blog series, we talk about the compensation principles that are foundational to ensuring your pay strategies produce the results required.

Striking a balance with core compensation principles

For the majority of organizations, core compensation principles should strike a balance between paying in a way that is externally competitive and internally fair. Yet, there are many different interpretations of what is fair. For this reason, it is critical to achieve clarity and agreement among key stakeholders on how the company should pay its people. This will ultimately inform your rewards philosophy.

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Tags: compensation, employee compensation, retention

Compensation Strategy: Balancing Company Goals with Industry Shifts

In this 5-part blog series, we’ll discuss how to build a compensation strategy for your company that balances company goals and industry shifts, supports business strategy, and ensures pay transparency.

Fair Pay for Employee Contributions

Oftentimes when managers discuss pay with their employees, they encounter questions for which they may not have an answer. Employees want to know they are receiving fair pay for their contributions, and may wonder...

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Tags: compensation, employee compensation, retention

How Compensation Consultants Can Help Your Business Grow

After your customers, your employees are the life blood of your business. Maintaining good morale and loyalty is essential to retaining them – and avoiding the costs associated with replacing employees who leave.

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Tags: compensation, compensation plan, comp plan, compensation strategy

The High Cost of Losing an Employee

We've found that business owners - especially those in middle market companies - are often surprised by how much it costs to replace an employee. 

According to Zane Benefits, a CAP study found average costs to replace an employee are:

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Tags: compensation, employee compensation, retention, replacing employees

Hitting the Target: Take Stock of Sales Roles and Compensation

It's that time of year again when sales organizations review performance against sales goals and start thinking about next year. But this year, I propose that companies take a more thorough approach to this process by:

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Tags: compensation, compensation plan, comp plan, sales force, business strategy

A Tale of Two Companies: Tying Compensation to Business Strategy

A family-owned business faces a leadership change to the next generation and a new strategic direction. The company is looking for new opportunities to grow the business and compete more effectively, while also eliminating outdated human resource practices.

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Tags: compensation

Your Broker as ACA Hero

The Affordable Care Act (ACA) has created a new hero – the small group insurance broker. He or she is one of the few who has complete familiarity with the various plans under Obamacare. These new plans —which are radically different from the old ones— will probably raise your premiums.

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Tags: compensation, compensation plan, ACA, comp plan, compensation strategy, affordable care act, Obamacare, mid-size company, middle market company