Establishing Total Compensation Strategy
Establishing a total compensation strategy for any size or type of organization is an inevitable necessity. Without it, the balance between intrinsic and extrinsic reward systems is left to chance. We wonder why we didn’t get the additional results from the new sales compensation plan; why the base pay system and the new bonus plan have the same performance thresholds; or why employees now expect the annual increase while financial results are down over last year. According to PORTICO’s President, Victoria Fuehrer, “Without a total compensation strategy, organizations are unable to channel the right rewards to the right people for the right reasons at the right time.”
PORTICO can help you to:
- Review and summarize peer group compensation data
- Interpret employee engagement survey results to assess employee preferences about compensation and benefit needs
- Define and match up compensation elements with expected performance outcomes and metrics
- Explore and define alternative compensation solutions that “match the magnitude of the reward with the magnitude of results”
- Translate the total compensation strategy into an appropriate base pay structure positioned to reflect targeted base compensation ranges and levels for different job groups
- Translate the total compensation strategy into effective variable pay plans that are positioned at the targeted variable pay levels
- Develop and implement employee communications that capture the essence of your total compensation strategy into memorable highlights
- Communicate program features and results to constituents or board-members
A total compensation strategy can be unique to each organization and be differentiated across job groups. Without an operable compensation strategy, organizations risk having duplication in their compensation elements, gaps in performance results, confusing compensation decisions and chaotic and disparate actions. A cohesive total compensation strategy is integral to attracting and retaining talent and building a high performance organization.
Reference: Quote is by Victoria Fuehrer - PORTICO
