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August 18, 2010
Compensation Guidelines and Policies

In a BLR webinar entitled "Pay Grades and Salary Increases: How to Build a Competitive, Equitable Compensation System in Your Workplace This Year," Dan Kleinman, principal of Dan Kleinman Consulting, explained that companies should have defensible, updated compensation guidelines and policies in place:

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  • You should have an overall compensation philosophy statement that is linked to specific policies dealing with pay grades, merit increases, promotional increases, green-circle/red-circle employees and other issues that crop up in your workplace.
  • Your pay grades policy should spell out how you gather and analyze data to set the grades, how you slot positions within each grade, how often you review the data and reset the grades, etc.

Dan Kleinman is the principal of Dan Kleinman Consulting (www.dankleinmanconsulting.com), a California-based compensation and human resource consulting firm. For the past 18 years he has served a broad spectrum of regional, national and international companies providing compensation, performance, organizational planning and reward-system design services.

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