Would you agree that compensation management may be the most critical HR function? After all, it affects operating budgets, employee engagement, recruiting, retention, performance, and productivity.
Compensation can account for 20-50% of your total operating cost. From an employee engagement perspective, compensation touches every aspect of the employee life cycle. This means there are many benefits of defining a compensation strategy:
- Attracting high-quality candidates
- Improved retention rates
- Positive impact on business results
Download The Ultimate Buyers’ Guide for Compensation Management: How Your Strategy Should Drive Your Technology Whitepaper.
Compensation plans should go beyond a simple merit matrix model as the main way we connect pay and performance. You can evolve the way you plan and deliver employee rewards by adopting a holistic outlook on how companies can (and should!) make pay decisions.
We know creating a strong compensation strategy is time-consuming work. And, the outcome of these strategies will definitely impact everyone at your company. Since talking about pay can be a delicate topic, try to keep a fair but competitive mindset when planning your compensation and total rewards programs.
Download Going Beyond the Merit Matrix: How Automation Is Changing Compensation Management Whitepaper
Off-Cycle Compensation is
- Compensation processes/awards that are granted to employees out side of the ‘normal annual’ compensation planning cycles.
- Often referred to as “Year Round Compensation”
- The processes typically initiate one individual employee at a time rather than a large group of employees
- These processes are more self-service type with a leader initiating the process, rather than the organization initiating the process
