YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 5

IS YOUR ORGANIZATION’S BASE PAY ON TARGET?

In this final article in this five-part series, let’s go back to a fundamental at the initial compensation question.  Is your base pay on target?  If not, everything discussed in Parts 1 through 4 will have reduced effectiveness.

The only way to answer this basic but critically important question with a high degree of accuracy is for your organization to periodically conduct a thorough market compensation analysis.

Without such an analysis you could be either underpaying or overpaying – both of  which have unintended consequences.
A consequence example is your losing valuable talent because of their being  underpaid.

Here is what a good compensation analysis consists of:

1)   Comparing your organization’s positions to comparable positions in other organizations:

  • In your industry
  • Of similar size (as measured by revenue and/or number of employees)
  • In the geographical area in which you would recruit for a position – be that locally, regionally or nationally

2)   Not merely look at a position’s title, but more importantly taking into account its:

  • Duties and responsibilities
  • Education and experience requirements
  • Skills and competencies

3)   Factoring in the incumbent’s:

  • Qualifications in comparison to the position’s requirements
  • Leadership training programs teach conflict management at workplace, creating a congenial work environment. buy cialis http://deeprootsmag.org/2013/10/17/shes-got-hand/

  • Performance
  • Other relevant factors

4)   Analyzing non-base pay salary

5)   Providing position-by-position, person-by-person compensation recommendations based on the analysis

HOW TRINITY CAN HELP:

  • Trinity’s Team has years of experience in doing compensation analysis.
  • We utilize an up-to-date, reliable data base of market compensation to expertly and economically perform a customized market analysis for your organization.

For more information:

E-mail Trinity at info@TrintyHR.net
Visit our website at www.TrinityHR.net
Call us at 856.905.1762 or toll free at 877.228.6310

You have HR challenges…Trinity Has solutions!

 

Posted in Compensation & Performance Management