Smaller companies need the compensation basics developed and implemented:

· A compensation philosophy

· Written job descriptions

· Benchmarking jobs with market data

· Pay grade structures with base pay ranges

· Offering target incentives (STI and/or LTI) aligned to the external market

· Written compensation processes and guidelines

When the company grows and is larger, then you need to add things like:

· An annual pay equity audit

· A job architecture foundation and career paths

· Compensation training

· Annual compensation planning software

· Salary Survey Data & Job Match Management Software

There are also other factors that employers need to consider:

1 - What industry are you in? Retail is typically less complex than technology firms. Manufacturing is different than healthcare and construction.

2 - How many unique jobs do you have? A 1,000-employee company that has 50 jobs is different than one that has 300 unique jobs.

3 – Is the employer a for profit organization or non-profit? If the employer is for profit, is it public or private? Is it family owned?

4 – How many places do you have employees working? Are you in two locations in the U.S. or in 18 different countries?

5 – What is the firm’s stage of maturity? Startup, growth, shake out, maturity, or decline?

6 – Do you have unions or not? How many different unions do you work with? Or maybe you have work councils.

7 – What is your compliance status? Are you paying the current minimum wage? What about the recent and upcoming FLSA changes in the U.S.? What about the EU Pay Transparency Directive?

8 – Do you care about paying living wages? What about cost of living versus cost of labor?

Compensation is complex and it is becoming more complex. If you do not have enough employees to get the work done, let’s talk.

#compensation #rewards #hr #humanresources #payequity #paytransparency #fairpay #livingwage #costofliving #costoflabor #attraction #retention #pay #incentives #compensationconsultant