Author Topic: Compensation Policy  (Read 824 times)

Shakib

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Compensation Policy
« on: October 04, 2018, 11:41:04 AM »
Compensation is a fundamental component of employment and one of the most critical HR management policies. While compensation traditionally refers to employment wage, best practice in today's workplace considers total compensation to include base salary, bonus or incentive plans, benefits, and non-cash compensation.

Who will be responsible for the administrative work of reviewing job evaluations and market data? The HR department will most likely maintain the compensation program. But many times, in lieu of an HR department, the administrative staff or accounting department may be in charge of the task.
What will be the process and timing for submitting new job evaluations? Generally, this is done as needed, but some organizations require these be submitted within certain timeframes to maximize efficiency.
What will be the process and timing for obtaining and reviewing market data? Most companies analyze market data on an annual basis. However, your organization may need to look at market data more frequently, especially if you are in a high growth mode or if you are in an industry or market where salaries are rising faster than the national average.
What will be the process and timing for adjusting positions or employees based on market data? This should tie in closely with the review of the market data. However, some employers would be wise to look for trends rather than respond too quickly to market fluctuations.
What will be the process and timing for adjusting employees pay based on performance or longevity? This should be directly tied to the performance evaluation process. Many organizations do the performance and/or longevity increase at a separate interval than market adjustments so the differences between the two types of increases are easier to communicate with employees.



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https://www.payscale.com