Ensure Your Total Rewards Packages (Compensation And Benefits) Are Competitive and Linked to Your Organizational Strategies.
Strategic compensation and benefits decisions include:
- Compensation and benefits philosophies
- Communicating pay and benefits philosophy
- Compensation and benefits responsibilities
- HR metrics
Compensation and benefits system design issues are also explored, including:
- Motivation theories and compensation and benefits philosophies
- Compensation and benefits fairness and equity (external and internal equity)
- Market-competitive compensation and benefits (lag-the-market, lead-the-market, and match-the-market strategies)
Specific questions we ask include:
- Does the plan fit the organization?
- Does the plan reward appropriate actions?
- Is the plan administered properly?
- Do the plans fail to link pay with performance?
- Does the individual incentive reward the effort and performance of individuals?
- Do the organizational incentives reward people according to the performance results of the entire organization?
- Does the organization need executive compensation and benefits?
The following strategic decisions guide the design of compensation and benefits practices for a successful pay-for-performance plan for the organization:
- Link strategic business goals and employee performance
- Enhance organizational results and reward employees financially for their contributions
- Recognize different levels of employee performance through different rewards
- Achieve HR objectives, such as increasing retention, reducing turnover, recognizing succession training, and rewarding safety
- Legal compliance with all applicable laws and regulations
- Cost-effectiveness for the organization
- Internal and external equity for employees