At the intersection of business objectives and recruitment is a strong compensation strategy. It’s what makes an organization stand out among the competition. But, how can you peer into the future and determine the best course of action when these goals keep changing?As we found in the 2015 Compensation Best Practices Report in about half of the companies we surveyed, the CEO is primarily responsible for setting compensation budgets, while the Head of HR is primarily responsible for setting compensation structures. It’s clear that human resource pros are increasingly taking their seat at the decision-making table, and for good reason. We know our people better than anyone else.
Getting Your Business Aligned with Pay Strategies that Make Sense
There are some simple concepts that any HR leader can use to transform the business into one that’s focused on reaching goals with a well-managed compensation plan, adapted from a previous article we wrote on this topic.
#1 – Become an Expert in Compensation
Your first defense in the fight for a more aligned compensation strategy is to become a true expert in everything compensation. Use real-time salary surveys, webinars on compensation, and content shared by experts in this area to become educated. Only then can you make more informed decisions and suggestions that support your organization’s future.
#2 – Analyze the Current Compensation Plan
Decide if your compensation plan needs a do-over by comparing it to current salary range benchmarks for every job description. Are you fairly rewarding workers for their efforts and is this producing the results you need? Use market salary data to create a merit structure. This article tells how.
#3 – Take the Lead You Need
While it’s easy to believe that you are on top of compensation for your organization, in reality you may be finding it hard to earn the respect you deserve as an HR pro. Start mending relationships with any executive members by engaging in conversations with them about compensation. Use your knowledge to develop better ways of doing things. Step up and take your place without letting others undermine your efforts. Use hard facts and figures to prove you are the best person to make these types of decisions.
#4 – Get Pay Structures Right
To best align salaries with company growth, consider that every decision you make “must add to the strength of the company.” Set pay structures and compensation metrics that work at all levels, from your entry level positions all the way to the top. Note any employees who are earning more than market rates and those who are contributing the most to the organization but not being paid well, then correct the balance.
#5 – Communicate Effectively
The ability to clearly communicate compensation policies comes from confidence in the information you are sharing, but it doesn’t stop here. Remember that people absorb information in many different ways, so use smart communication methods to illustrate important topics. Try a mix of visuals and presentations for tough concepts, with print and email communications going out on a regular basis. Become a top notch communicator both written and verbally to earn the attention and respect of others in your organization.
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