• Developing a Competitive Compensation Strategy

    Strategic Compensation and Your Position in the Market

    Smart HR leaders regularly ask themselves a key question when planning a human resources compensation strategy, “Have we positioned ourselves well relative to the market?” In order to answer this question, you must first know how competitive you want and need your compensation plan to be. Then, you can build pay ranges in alignment with your competitive compensation strategy.
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  • Integrating General Business Strategy with Compensation

    Decided, Defined, Done: Why You Need a Business and Compensation Strategy Right Now

    I have written lately about the importance of integrating general business strategy with compensation. The fact is that your business strategy is likely more clearly defined right now than your compensation strategy. You might not even have a compensation strategy at all. Do you know where you want to be in the market as an employer, compared to your competition? Are you hiring in a range that you can afford long-term?
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  • Preparing a Compensation Plan

    Catching Up with the Economy: How to Prepare for a Compensation Plan Re-Design

    Up, down, emerging and disappearing – these are the movements that most markets are dealing with these days. Is your company keeping up with all of the changes, and addressing the resulting wake of new employee compensation challenges? With the fast pace at which markets and industries are transforming, likely not. How can you get your talent strategy in line with your current business priorities?
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  • Compensation Metrics Defined

    A Crash Course in Key Compensation Metrics

    While some of us may not be big fans of math and statistics, a crucial part of managing your organization’s compensation plan is understanding compensation metrics. This post will compare and contrast two of the key metrics that are frequently used in compensation today.
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  • Compensation Plan for Business Success

    Pop Quiz: Is Your Compensation Philosophy in Line with Your Business Strategy?

    In a recent PayScale webinar I led titled, “Aligning Your Compensation Philosophy with Business Priorities,” I began by asking the attendees some questions to assess their commitment to aligning their employee compensation plan with business objectives. The following is the list of questions, as well as advice on how to apply the insights they bring to your current compensation planning efforts.
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  • Sales Incentive Compensation Plan

    Does Your Sales Compensation Plan Need a Makeover?

    Few topics in compensation cause more debate and confusion than how to create a compensation plan for sales reps. One thing is clear: a sales compensation plan should be re-evaluated regularly, particularly in times of economic uncertainty.
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  • Advantages of an Effective Compensation Strategy

    What Is the Advantage of Taking the Time to Develop a Compensation Strategy?

    The biggest mistake an organization makes in setting up a compensation program is to rush into getting the answers without carefully considering the issues. Next to your organization’s strategic planning efforts, dovetailing the compensation philosophy to support the organization’s strategic plan is paramount to success. Not sitting down with your senior management team and clearly discussing the basic strategic decisions around pay can be very costly not only in organization success, but can expose the organization to possible law suits. Because of this, it’s essential for your organization to sit down and discuss how to integrate general business strategy with compensation strategy.
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  • Small Business Compensation Plan

    Developing a Small Business Compensation Plan

    I often get asked, “At what point (how many employees) should a company establish a formal compensation program?” It’s a good question with lots of different answers. Finding the “right” time depends on several factors. Let’s start with a couple of examples.
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  • Strategic Compensation Planning

    Coming in June: Strategic Compensation with Sharon Koss

    By Staff Writer

    How do you push for better compensation planning at your company? How can you analyze your company’s current compensation philosophy, improve it and then communicate those improvements to upper management?

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  • Overpaying Employees

    Paying Employees Too Much? How To Deal with an Expensive Employee

    I’m actually surprised at how often people ask the question: “What do we do when we find out we are paying people too much?” To answer that question you first need to ask yourself two important questions: 1) Have I properly defined the market for this position? 2) What type of performer is this employee? Paying employees too much is not something that most companies focused on becoming or remaining profitable for a long time can do without merit. Certainly, if the employee is a super star, you probably can afford to pay extra. But if they aren’t, it’s best to reign the spending in. This type of pay practice can actually put you out of business.
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  • How to Use an Employee Performance Matrix

    How to Make Bigger Salaries Mean Better Business

    When your supervisors determine which employees will get pay increases and how much they deserve, they are making or breaking your business. How? By connecting performance to pay, or not, your managers tell your employees what sort of work ethic and attitude get rewarded at your company. How do you train them to deliver a consistent message across the company?

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  • Articles on Compensation Plans

    A How-To Guide: Articles on Compensation Plans

    When you think about compensation planning, where could you stand to learn a bit more? Maybe you're trying to develop a compensation philosophy or ensure internal pay equity. Here at Compensation Today, we have written a number of articles with how-to information about compensation planning. Whether your compensation plans are established but you need help communicating them to employees, or you’ve never prepared a compensation plan before, you’ll likely find some helpful information in the articles listed below.
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  • Performance-Related Pay Models

    Making Pay-for-Performance Models Work

    The top level has announced that the organization is shifting to a performance-related pay model. What does pay for performance mean? Aren’t we all performing already? Aren’t we getting paid for that? The real answer is probably not.
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  • Performance Matrix Questions

    Q & A Session – Shifting to Pay for Performance


    The following is a transcript of questions and answers from PayScale’s webinar, "How to Play a Key Role in Compensation Budgeting." The topics covered include how to offer meaningful employee rewards on a tight budget, how to train managers on pay for performance, and how to talk to employees who have reached the top of their pay range. Answers are provided by PayScale’s director of customer service and education, Stacey Carroll, M.B.A., SPHR, Frank A. Cania, SPHR, and Betty Richardson, CCP.
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  • Average Salary of Jobs in Manufacturing

    Climbing Back: Average Salary of Jobs in Manufacturing

    By Staff Writer

    If you ask most people to name an industry that really suffered during our recent recession, you’re likely to hear “manufacturing.” According to the Bureau of Labor Statistics, the unemployment rate in the manufacturing industry reached 12.5 percent in November of 2009 then climbed to 13 percent in January 2010. Fortunately, that percentage is slowly dropping and the number of job openings and new hires is growing right now.

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  • Why Develop a Competitive Compensation Plan

    Ways to Beat Your Competition with Your Compensation Plan

    By Staff Writer  

    Your company is likely already looking to profit in all of the obvious ways, like sell more products, buy better equipment and invest in more lucrative locations. But, has your company leadership considered that they can beat their competition with smarter compensation planning? Any HR person knows that this approach is not only possible but essential. The key is to know how to get it done.

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  • To-Do List for Human Resources Planning

     

    More Compensation Planning Mistakes and the Steps to Avoid Them

    By Staff Writer

    In a previous post, “Top Compensation Planning Mistakes (And How to Avoid Them),” we discussed the first five of ten most common compensation mistakes and how to avoid them. In this second post, we’ll cover five more habits that can lead you into trouble. We’ve also compiled for each an HR to-do list to avoid these common pitfalls.

     

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  • Setting Compensation Budgets

    How to Play a Key Role in Setting Compensation Budgets

    By Staff Writer

    During PayScale’s recent webinar, titled, “How to Play a Key Role in Compensation Budgeting,” PayScale director of customer service and education, Stacey Carroll, MBA, SPHR and HR experts Frank A. Cania, SPHR and Betty Richardson, CCP, explain why, in today’s economy, smart compensation planning and budgeting is more important than ever.  And, they explain how you can bring that message to your company.

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  • Employee Compensation Plan Design

    Think Ahead: Smart Employee Compensation Plan Design

    When it comes to helping HR professionals utilize our tool to build, maintain, or update their compensation program, I hear myself saying over and over again, “remember it’s a tool, but you have to know what you want from the tool before it can be useful.” It is very important for any organization that is going through the process of benchmarking to work through what their employee compensation plan design strategy is prior to trying to interpret external market data. Part of defining your compensation philosophy is knowing who you compete with for talent and how competitive you want to be. Let me provide you some examples of what I mean.

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  • Compensation Planning Mistakes

    top compesation planning mistakesTop Compensation Planning Mistakes (And How to Avoid Them)

    By Staff Writer

    There are many ways to make mistakes when doing compensation planning. The day-to-day hustle of growing a business can cause anyone to miss key details, fail to communicate fully or skip some step in the process.

    In this post on compensation planning mistakes, we’ll help you learn what’s most important about your communications with employees, ways to boost employee morale and how to create a more efficient work stream when it comes to planning compensation budgets. Below are the first five of 10 suggestions we’ll be sharing with you. Feel free to leave a comment with some suggestions of your own.

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