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In The Day, we had a Compensation Audit procedure covering the following categories: competitiveness, pay for performance, internal equity, government regulatory compliance, cost control, communications (the degree to which pay rewards should be used to communicate organizational objectives), turnover, cost effectiveness, concern for employees ("heart") and administrative ease.

Audiences from board directors through all management and other ranks tended to have no idea what their enterprise's intended policy/objective was supposed to be in each area. But all had absolutely no problem identifying the actual PRACTICE and relative importance of each category's perceived policy or objective.

A very rewarding activity, it was regularly a real eye-opener to all participants when they could safely answer an anonymous audit survey and learn the consensus answers. Such a pre-study is always a win-win process, since there are never any "right" or "wrong" answers and only "what is best for OUR unique organization".

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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