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Seven keys to a robust compensation system

Posted by Anadi Upadhyaya on September 12, 2011



Keys

The seven keys to a robust compensation system that will help you in attracting, retaining, and motivating the workforce are:

  1. You should have a fair compensation policy in place and it should be easily accessible to your workforce.
  2. Your compensation policy should be context sensitive. Market data should be used wherever appropriate to keep it fresh and competitive.
  3. Your compensation revision schedule (e.g. salary revision cycle) should be communicated to the workforce in a planned manner and in advance. Open communication will help your workforce to focus on their duties instead of wasting energy and time in waiting and guessing about it.
  4. Compensation should be linked to the performance. It will keep performers motivated and will help you to retain them.
  5. Policy execution should be monitored regularly to make sure policy has “Buy in” at all the levels and execution is not diverting from the planned objectives.
  6. Your compensation policy should be open for feedback. Proper and industry accepted channels should be established to achieve this.
  7. You should have a built-in audit capability to detect and correct any compensation discrimination. It will save your brand and increase employee engagement.

5 Responses to “Seven keys to a robust compensation system”

  1. Short and sweet and spot on.

  2. [...] Anadi Upadhyaya, from TheTalentedApps team, contributed Seven Keys to a Robust Compensation System at http://talentedapps.wordpress.com/2011/09/12/seven-keys-to-a-robust-compensation-system/ [...]

  3. Cathy Fabisch said

    Concise and thorough! I like it!

  4. Surendra said

    Simple, short and interesting one Anadi.. keep writing !!

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