There are countless ways that HR can help the people of your organization achieve your objectives. Understanding principles like compensation, culture, learning, and engagement is the first step. But here’s the question: what do you do next? What changes will provide the most benefit for your organization?Download Ebook
Every compensation plan needs a philosophy, which is a statement that outlines the high-level goals that your organization is looking to accomplish with its compensation budget.
A compensation philosophy clarifies to your employees what your company believes in, what values you hold dear, and what you’ve chosen to reward.
A defined strategy will answer these questions:
When you’re an HR professional in a small business, it’s pretty standard to have a lot on your plate at any given time. You’ve probably come to expect it. There are a lot of moving parts for you to look after, and you’re determined to handle each and every one of them with excellence—and for that, we applaud you. Beyond tipping our hats to the hard work you put in, we have some strategies to help make your job easier and even more effective.
Chet Faker – HR Generalist, BambooHR
Ideally, you’ll want to have at least two to three data sources to work from to guarantee the accuracy of your results.
When selecting your benchmark jobs, start with those positions that are standard across different industries. Next, choose industry-specific positions that are standard at your company compared to positions in other organizations within your industry. Avoid using positions that are a blend of two or more positions. Don’t force matches to market data for non-benchmark positions.
Pay ranges are guidelines for paying people based on the market value of their jobs. Pay ranges also help smooth out daily or monthly market fluctuations and set upper and lower bounds of possible pay.
The market value approximates the midpoint of the range. Typically, you’d bring people into a job at or near the minimum of the range and as they gain skills and experience, they’d move up the range. Essentially, you pay people at market once they’ve demonstrated their value.