Compensation is more than just salary. An effective compensation strategy motivates current employees and is a tool to attract new ones.
A comprehensive compensation strategy can be the foundation for creating an environment that recognizes and rewards employee performance and helps to establish a strong culture of employee engagement. Organizations are only as successful as their approach to hiring the right people, setting clear expectations, managing performance and recognizing and rewarding employees for meeting and exceeding expectations.
Performance based compensation can look different from organization to organization. The compenstation/reward system can incentivize employees to learn new and apply new skills, and/or can reward based on meeting performance objectives set. This is a good option for production, maintenance, or trade related jobs. It also can help to create a pipeline of skilled workers within your company.
It is important to have a fair, objective, and standardized performance management process to ensure employees are meeting performance objectives and are assessed on a regular basis. This process should include annual goals, performance appraisals, and a structured process for coaching and mentoring employees. Clear standards for compensation should also be developed and communicated with employees.
Successful compensation management involves developing an annual review process, conducting salary audits, developing the raise process timeline, and ensuring all areas are completed.
To be competitive, it is important to benchmark like jobs within the same industry and create a pay structure. RCI can pull data from regional similar industries and provide you with information to update your current salary ranges to be more competitive within the market.
Developing salary ranges is critical to ensuring employee pay is competitive with other organizations.
When making any business decision, the impact on the budget must be examined. RCI will prepare budgets and the impact on it over time for several scenarios so that you can make an informed decision on what option is best for your business and employees.
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Call Us(423) 806-0640
Rock Creek Informatics
P.O. Box 23452
Chattanooga, TN 37422