Strategic Compensation Management

Strategic Compensation Management^©

The Global Pandemic has certainly been a major disruptor to our businesses and lives. A lot has changed and will continue to change overtime as we move into the Post COVID period.

Companies are having to realign and rethink how their employees are compensated, what the work environment looks like and how best to create an environment that retains, engages and attracts.

Core pillars of retention and engagement –are built on the development, implementation and maintenance of an effective total compensation strategy. What you pay, how you pay and what you pay for; integrated with opportunity for advancement, competitive health care and benefit – plans and work/life balance that is also coupled to being valued for their work maximizes the creation of a compelling place to work and thrive.

Strategic Compensation Management^© looks at all of these core pillars that build on a competitive foundation to reward employees. This involves short- and long-range planning that builds in compensation| pay structures that rewards performance and results in company success. It is an intentional process that is ongoing in an organization to ensure fairness and balance in its compensation model. It is more than just words or an exercise yearly, ideally this needs to be baked into the company culture and philosophy.

What a strategic compensation model needs to address:

Strategic Policies

Internal Alignment

Competitiveness

Contributors

Administration

Techniques

Work Analysis, Descriptions, Job Evaluation, Internal Structure

Market Definition, Surveys, Policy Lines, Pay Structure, Pay Equity

Experience, Performance Merit Guidelines, Incentive Programs

Planning, Budgeting, Communications, Ongoing Evaluation

Strategic Objectives

Efficiency

Quality, Performance

Fairness

Compliance

A simple “let the market decide our pay strategy” doesn’t work. It is fixated on one technique and doesn’t answer the question – how does our strategy help us achieve our objectives?

“The underlying premise is that the greater the alignment or fit between the organization and the compensation system, the more effective the organization.”

– Milkovich, Newman, Cole

Attracting top talent and keeping your talent is key to staying competitive and creating a growth environment. COVID has created a highly competitive environment for talent. There are many reasons for this that includes greater flexibility how and where work is done, early retirement and living costs regardless of what part of the country people live in. Employers are now having to demonstrate agility and innovation when looking at their compensation model, how employees are being developed and creating a positive work experience. Our Strategic Compensation Management^© program can help.

Our innovative and leading edge compensation platform powered by Encompassing Visions™ integrates all of these strategies under one tent to support the process to ensure being strategic connects with strategy and delivered consistently across the organization for amazing results. Contact us today to get started!