![]() You can use the data to do an initial compensation market analysis, then drill down to analyze how yours compares. These survey results cost money to access, but they’re an important source of baseline information. Labor research firms conduct surveys that can give you insight into industry norms for employee compensation. Once you’ve built your team, be sure to outline goals, timelines, responsibilities, and meeting frequency to keep your analysis on time and on track. ![]() While HR team members may lead the effort, your compensation analysis team can include members from other departments who can provide important perspectives. Sometimes companies assign individuals to handle the analysis, but most require a team. Even within HR, however, you’ll need to determine who specifically will execute it. Conduct an Effective Compensation Analysis with These 6 Steps Build an analysis teamĪ compensation analysis is usually conducted by a company’s HR department. When employees are consistently and equitably rewarded for their work, it encourages motivation and instills an expectation that employees will perform in return. The Great Resignation may be decelerating, but employees no longer hesitate to enter the job market when they feel their employers don’t offer a fair or even attractive enough compensation plan.Ĭompensation also plays a critical role in building a high-performing culture. In other words: your compensation strategy impacts your ability to attract new talent.įurther, it plays a role in determining how long your best employees will stick around. But in 2022, compensation remains the top priority for most people evaluating new job offers. We hear a lot about new employee priorities, especially today as new benefits like flexible work environments and unlimited PTO become more common. Why would a Company Conduct a Compensation Analysis? The goal is to understand how compensation impacts the employee experience and how it positions the company against competitors in the eyes of potential new hires. Typically performed by the HR department, regular compensation analyses give insight into external competitiveness as well as internal equity as it relates to paying employees.Ĭompensation analyses look at both financial payment (salary and wages) as well as other forms of compensation, including health benefits, paid time off, and employee perks (like on-premise wellness facilities or employee discounts).
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