Determining the relationship of an organization’s pay structures and pay rates to those prevailing in the relevant labor markets is a critical part of its compensation management system. Getting it wrong can result in unnecessarily high compensation costs or non-competitive rates that can result in dissatisfaction and turnover. But getting it right is challenging. Compensation … Continue reading Surveys Are the “Rosetta Stones” of Market Pricing in Compensation Management
Tag: compensation planning
Developing A Sales Compensation Strategy
The first step in creating an effective sales compensation system is to develop a strategy that is derived from the objectives of the organization and its business strategy and that is a good fit to the context within which the organization operates. The importance of sales will depend on that context. A monopoly with no … Continue reading Developing A Sales Compensation Strategy
Executive Compensation: Programs That Should Be Avoided
There are programs that do not stand up under scrutiny and that will breed suspicion that the playing field has been tilted in favor of executives. These “third rail” programs should be avoided. They can be recognized by their characteristics: High Upside Potential; No Downside Risk: Adverse reaction is inevitable when certain types of programs … Continue reading Executive Compensation: Programs That Should Be Avoided
Survival Guide For HR: Executive Compensation
Given the potential pitfalls associated with executive compensation how can HR do its job in a manner that protects the organization’s interests? Certainly not by avoiding direct involvement in executive compensation, leaving it to the Board. Quite simply, HR must listen to, understand and consider the perspectives of all constituencies and reconcile them by ensuring … Continue reading Survival Guide For HR: Executive Compensation
Robert J. Greene | Reward $ystems, Inc. 