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 CRI's own compensation studies have shown that since 2007, merit increase budgets have declined for various employee groups. Projected 2011 merit increase budgets, however, are starting to show signs of improvement. However, the differentiation in merit budgets from executive to hourly is almost insignificant, whereas in the past there has been a greater distinction in those individual budget lines.
For a Limited Time receive a
FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!Results, along with general industry sentiments, show that companies are beginning to refocus on compensation and setting aside monies to reward employees who perform effectively.
A compensation philosophy:
- Establishes the company's position relative to the market.
- Describes pay-for-performance positions.
- Identifies the elements of pay.
- Describes the commitment to maintaining competitive positioning.
Evaluate competitiveness by:
- Developing a compensation philosophy consistent with the organizational strategy
- Identifying competitive market(s).
- Clarifying key criteria of benchmark positions.
- Conducting a market analysis.
The goals of market pricing should be to:
- Determine competitive value of positions.
- Determine the company's overall positioning in the marketplace.
- Confirm pay positioning against philosophy.
- Provide means by which to evaluate salary structure(s).
- Ensure pay programs achieve basic objectives of compensation.
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.
Need help staying on top of critical HR and Compensation issues? See all the webinars BLR has to offer.