In a BLR webinar entitled "Compensation Strategies: How to Build a Market-Competitive Salary Structure that Retains and Attracts the Very Best," Diana D. Neelman, CCP of Compensation Resources, Inc. explained that corporate mission and global goals should include a specific compensation philosophy. The philosophy is the guidepost for company policies and compensation objectives.

The philosophy should address policies for:

• Career development
• Benefits programs
• Base salary administration
• Performance management
• Long-term capital accumulation programs
• Special achievement and recognition awards
• Annual incentive programs

The basic objectives of compensation are to:

• Focus employees on achieving key business objectives.
• Attract qualified and quality employees.
• Retain staff who contribute positively to overall Company performance.
• Motivate and engage staff to achieve higher levels of performance.

Secondary objectives of compensation are to:

• Cut costs.
• Improve quality.
• Increase productivity.
• Improve response time
• Stimulate creative thinking.
• Improve competitive position.
• Focus attention on new issues.
• Introduce cross-functional work teams.
• Support skill-based jobs.

Diana D. Neelman is a Principal and Senior Consultant with Compensation Resources, Inc.. (www. compensationresources.com) She manages the research and data analysis relative to the design and implementation of comprehensive compensation programs. Ms. Neelman is responsible for the development of written policy and communication materials, including plan documents, policies and procedures manuals and administrative forms that support the plan designs. She is also responsible for developing and conducting training programs covering various compensation topics. Furthermore, she oversees CRI's Survey Department, which published various compensation and benefits studies each year.

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