What is direct and indirect compensation? Key takeaway: Every company needs a compensation plan to organize and strategize how they will attract and retain top talent, as well as to budget in a wise and predictable manner. To attract and retain the top workers they desire, more organizations are focusing on building “an employer brand, which includes a more strategic approach to compensation and career pathing as well as better benefits and more varied and incentivizing ways to reward performance.” Compensation programs allow for consistent and predictable budgeting and planning.Īccording to PayScale’s 2020 Compensation Best Practices report, companies are having a tougher time than ever finding (and keeping) enough skilled talent to fill all of their needs. Additionally, managing a workforce without a predetermined budget is insanity in action. Employers who just go with whatever they feel they should pay their employees will slowly lose the talent game they are playing with their competitors. Why do companies need a compensation plan?Ĭompanies need a thoughtful compensation program to remain competitive within their industry and to attract and retain top talent. Key takeaway: A compensation program constitutes a company’s total method of renumeration, including payment, benefits and any other form of compensation for services rendered. It helps keep your business competitive in the marketplace in terms of base pay, incentives, total compensation and benefits opportunities.It serves as a strong motivator for employees to perform at high levels and exceed goals.
0 Comments
Leave a Reply. |