Compensation Programs & Administration
A structured program of compensation is essential in optimizing good employee
relations by establishing a meaningful and acceptable relationship between
work and rewards. Work performed by employees should help the organization
achieve its objectives as identified in the organization's overall business strategy
which is supported by a clearly articulated total rewards program.
Characteristics of an effective compensation program include:
Internal Equity - Ensure the organization has determined the value for each
job, its relationship to other jobs. Develop rules for pay adjustments.
External Competitiveness - Ensure that the organization's pay structure is
competitive within the identified market.
Affordability - Ensure that the compensation system is affordable as
compensation is an organization's largest single controllable expense.
Legally Compliant - Compensation programs must be administered in a legally
compliant and defensible manner by adhering to specific laws such as Equal
Employment, FLSA, and discrimination regulations.
Understandable - The compensation program must be easy to understand
and communicate. Overly complicated systems are not readily accepted by
employees nor defended by frontline leaders.
Efficient to Administer - The plan must be easily administered by the human
resource team and, most importantly, by frontline management.
It is the role of the HRPG consultant to first understand what the organization
wants to accomplish from its compensation system - the corporation's
compensation philosophy. It is then HRPG's responsibility to help develop the
necessary systems that will support the organization's compensation philosophy
while adhering to the basic tenets.
Elements of compensation program development include:
- Job Analysis
- Position Descriptions
- Job Evaluation
- Local, Regional and National Compensation Surveys
- Salary Structures and Progression Schedules
- Incentive Pay Structures and Eligibility
- Program Costing
- Program Administration Guidelines
- Implementation Guidelines
HRPG designs programs that include all elements of total rewards including base
salary or wage, short-term incentive plans, long-term incentive plans and non-
monetary incentives and rewards.
Programs are customized for all employee groups as well as the client's
Executive Team, Board of Directors and/or Board of Advisors.
Contact Us to discuss how we may assist with your compensation program.