What is your compensation philosophy?

There are many ways to answer this question. Here are some examples:

1. We pay between the 50th and 75th percentile.

2. We target the 50th percentile of the external market.

3. We review the external market and provide pay opportunity that is competitive and internally equitable.

4. We are committed to aligning the total compensation opportunity to the external market which is defined as what other employers are paying for similar work.

5. We align cash compensation to the external market and ensure that our pay decision making processes are consistent, equitable, fair, and transparent.

6. Jobs are assigned a base salary range that aligned to the 50th percentile of the market and includes higher pay opportunity to reward consistent exceptional performance.

7. We have a pay for performance philosophy and therefore your total compensation will be aligned primarily to your performance and that of the company. Your pay opportunity will be targeted to the 50th percentile of the local market where the work is performed.

When I work with an employer client, I ask for their compensation philosophy.

What is written and what is said often differs.

And then we check to see if what is written and said is the same as what is really happening in practice. Often all three are different.

Be consistent. Do what you say. Check to ensure that what is happening is aligned to your intent.

Trust is difficult to rebuild once it is lost.

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