Compensation Philosophy & Strategy
Effective compensation practices all begin with a documented pay philosophy that supports the organization’s mission, values and culture. From there, HR and management can devise a compensation strategy to identify the organization’s job market, define its position within that market, and determine the appropriate pay programs for attracting and retaining the right talent. Without these fundamentals in place, organizational pay practices will eventually wind up all over the map, potentially creating burdensome administrative tasks, confusion, inconsistencies, poor morale, and internal inequities.
Together the compensation philosophy and strategy act as a framework for making sound pay decisions that not only reinforce the companies mission, values and culture but will also help ensure consistency and fairness across the organization. It’s really at the heart of what we call mission-centric compensation.
A significant number of the compensation problems we see in younger, smaller organizations are the direct result of having no defined philosophy and strategy. While larger, more mature organizations often need to re-evaluate and tweak these fundamentals from time to time, especially in the wake of rapid growth, mergers, and acquisitions.– David Ellis, Managing Partner
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Our straight forward approach to developing and maintaining a sound and effective compensation philosophy and strategy has worked for companies both small and large across multiple industries. Click the button below to contact us and learn more.