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. addressed the mindset on some current compensation issues.

Economic conditions stagnated or reduced salaries over the past three years. As conditions begin to improve, companies are realizing that their market competitiveness may have suffered. Many companies are beginning to reevaluate their existing salaries and the salary structures by undertaking market studies to determine where they stand. Since some employees may be eager to seek other employment as the labor market opens up, it is important to understand market positioning in the event that compensation is one of the main drivers for seeking another job, particularly for recent graduates.

Concurrent with improvements to the economy is companies refocusing on their strategic plans. Human capital is a companies' biggest asset, and ensuring that the total rewards package is properly structured to enable them to contribute towards goals that relate to the strategic plan is a significant effort that needs to be undertaken. Not only must base pay be competitive and commensurate with market and performance (both individual and corporate), but opportunities for incentive compensation should be provided to those that can impact the strategic plan. Incentive compensation provides organizations with another layer of "pay for performance" in addition to annual merit increases to base salary, which are relatively modest as compared to the impact incentive compensation can make to total rewards.

Lastly, employees are only aware of what their getting (cash compensation, benefits, professional development, etc.) if their employers tell them so. Total rewards statements are effective in getting that message across.

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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