Are your compensation dollars being well spent?
How do you know?
At best, organizations struggle to answer these questions. At worst, they never ask them to begin with.
Whether its called a compensation philosophy, reward strategy, or something else, it is important that an organization's leadership come to some agreement on what should be accomplished - and how - with the dollars spent on employee compensation. For most organizations, employee compensation represents a significant portion of the cost of doing business. It deserves to be managed with the same focus and attention as any other important investment.
How to develop a compensation philosophy - or revisit one that's been gathering dust on the shelf for several years? It can be as basic as getting the right people together to answer some fundamental questions, starting with the big one: What do we want our compensation program to do?
More on compensation philosophy questions in tomorrow's post.