Most employers want to develop a compensation & benefits structure with only three basic objectives: to attract, retain and motivate the best employees . But then they realize how hard it is to match employee expectations and market competitors salary structure with their own companys affordability . Employers and their HR Managers do not know how to balance all three and develop a structure which is both Internally and Externally Equitable . So, in most cases, compensation management focuses on fire fighting and keeping tabs on what competitors are doing. Paying people becomes a necessity of business rather than a means to achieve an objective.
Employees also use compensation & benefits that they receive, as an indicator for who they are in an organization and what is their value in the organization. It is sometimes far removed from how much contributions they are making to the bottom line - more linked with the labor market supply and demand factors for their technical skills.
In reality, while management of marketing sales, finance and production has undergone massive changes in the past decade, many companies continue to use traditional, out-of-date systems for compensation. But compensation & benefits structure can become a vital tool that allows employers to equitably and consistently implement their programs in order to achieve the organizations objectives. Organizations that will emerge winners from the current economic development instability are those that are now focusing on best practices for compensation management .
This training will help guide HR compensation managers in developing a fair and affordable compensation and benefits structure for their own organization. It will also help them in assessing where their own companies fit in the marketplace when it comes to attracting, retaining and motivating the required talents. This will also guide them in designing other systems in HR , including recruitment strategies, pay for performance systems, right sizing and many more to support in improving the overall effectiveness of the organization.
Workshop topics to be covered:
Compensation Policy Development
Create philosophy to pay
Analyze current practices vs. desired objectives
Relate internal policies to external market
Establish guidelines for equality, competitiveness and motivation
Paying for Position
Develop an equitable grading structure
Create a reference salary structure
Leverage compensation costs with market survey information
Paying for Person
Determine competency requirements and employee capabilities
Pay individuals based on their competency match with the position
Identify and pay market premium for competencies in short supply in the market
Paying for Performance
Design annual bonus and incentives plans that motivate staff
Shift from merit salary increases to variable pay
Create long-term reward plans - stock options, deferred compensation and gain share plans