How does an organizational compensation strategy help your organization flourish by attracting talent and then retaining talent?
Your company’s compensation strategy works to ensure that people’s performance and organizational results tally. When this sync is present, it bodes well for your company. It means your workforce is motivated to meet the organizational goals as an outcome of your company’s compensation endeavors.
What is the purpose of an organizational compensation strategy?
At its core, the purpose of a compensation strategy is recruitment and retention. When you pay well, you attract top-notch talent. When you increase their pay, you get to retain them longer.
According to an article by The Predictive Index, a compensation strategy is as important as customers, profit, and marketing plans and should receive equal attention.
What are the key takeaways when applying and creating a compensation strategy?
First of all, you must gauge your affordability to pay and measure employee performance to be compensated. Hence, you ought to design, evaluate, and personalize your compensation strategy. Undoubtedly, your organization will progress when an effective compensation strategy is in place.
You cannot overlook an organizational compensation’s structure. It is an important aspect to design, structure, and build your talent strategy. When you get your compensation structure right, you will be able to create an effective compensation strategy.
How can I get started with an effective compensation strategy?
You can take targeted steps to devise an effective compensation strategy for your company. For example, you need to measure if you can afford a pay-for-performance system in good and bad times. You must define performance that supports context, among others.
Of course, there will be challenges when you are vying to structure up your compensation strategy. To make things go smoothly, you must first be fully cognizant of your company’s goals and needs. Then you can build your compensation strategy in such a way that enables you to rebuild and make timely and necessary tweaks to it.
A Compensation Studies certificate is offered by Genashtim in collaboration with eCornell. Enroll in the professional development program today and become a HR professional specializing in compensation and benefits.
eCornell courses are approved by SkillsFuture Singapore for SkillsFuture Credit as well as by HRD Corp Malaysia under its SBL-Khas Scheme.