Designing a Compensation Plan Helps you Find the Perfect Balance

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Employees are without a doubt a company’s most expensive asset. Paying too much can be very costly. However, paying too little can result in turnover, low productivity, and low employee morale. We help establish a pay system to set fair base pay and incentive amounts. Based on business strategy, we help align pay practices to drive desired behaviors and business results. We further help create the perception of internal and external fairness needed to attract and retain the right people.

Can Designing a new Compensation Plan help with Employee Retention?

 

A competitive compensation plan is a critical part of employee retention efforts. You need to ensure that the plan you offer is enough to not only attract quality job candidates but that it is enough to keep those employees with the company for the long term. If your employees feel that they are important to you, and then you will take care of them, they will do whatever you ask of them. 

Deliverables

Salary range guidelines to set base amounts and to control and manage labor cost. Procedures to set new hire pay, promotions, equity adjustments and pay increases. Pay methods that make sense and drive desired results and behavior. Salary survey data comparison (survey data may cost extra). Incentive and bonus plan design. Alignment of other rewards and reinforcement practices. Identification of equity concerns and possible pay discrimination practices.

Compensation Plan Amounts

Establish base pay guidelines that make sense, are competitive with the market, attract good people, and help control cost. Use the right kind of pay methods to drive desired results and behaviors. Create incentive and bonus pay plans that help drive business strategy. Promotion and pay increase guidelines.

According to Leigh Branham, CEO of Keeping the People, notes that 89 percent of managers believe people leave their jobs due to compensation, but 88 percent of employees actually leave for other reasons. Branham says the seven hidden reasons are: the job not being as expected, people not being a good fit for the job, too little support or feedback, little opportunity for growth, feeling unappreciated, stress and overwork, and loss of confidence in management. Resolving these common problems can keep employees satisfied in their jobs so they are more likely to stay.

Leigh Branham

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Contact us by Phone: 385-237-5902 x 1 or by email.
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