HR’s Guide to Setting a Compensation Strategy
What you need to know for a more holistic, transparent, and equitable approach to employee pay.
Attracting and retaining employees is only getting harder. And while employee engagement, career development, and flexibility are certainly important factors, compensation may be the biggest. One survey found that 52% of employees viewed potential merit increases as their lead reason for staying with their companies, ahead of factors like culture and work relationships. And according to a recent LinkedIn study, businesses rated highly on compensation also have 56% lower attrition rates.
While money isn’t everything, “comp” directly impacts engagement and performance and is closely intertwined with career development. But at most organizations, the decision-making process around pay can feel arbitrary, shrouded in mystery, and even subject to bias. When asked, only 24% and 27% of employees and HR leaders, respectively, believe their compensation processes are transparent or easy to understand.
If compensation strategy isn’t already a core part of your People practice, it should be. In this ebook, we’ll address the big questions you need to answer before that can happen. From identifying your comp “philosophy” to designing salary bands that integrate with job levels, we’ll go through what you need to know for a more holistic, transparent, and equitable approach to employee pay.