Thinking about compensation could probably include the following key components...
Organizations need to develop a compensation philosophy and direction in writing that is reviewed by the Board of Directors and agreed to by your managers.
Particularly in an entrepreneurial, market-driven company, the compensation philosophy needs to include a method for grouping similar jobs for purposes of broad banding, since promotional opportunities are limited.
It should include a responsible, measurement system for awarding variable pay. I recommend less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment.
Goal attainment should be rewarded for both individual and organizational goal achievement to foster teamwork and eliminate the “lone ranger” mentality.
Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success looks like. They should not reward checking items off a “to-do” list.
As the cost of benefits has increased, their place in a total compensation package has increased in importance. Shifting the costs of some benefits to employees is a last-option scenario.
:SugarwareZ-185:
Organizations need to develop a compensation philosophy and direction in writing that is reviewed by the Board of Directors and agreed to by your managers.
Particularly in an entrepreneurial, market-driven company, the compensation philosophy needs to include a method for grouping similar jobs for purposes of broad banding, since promotional opportunities are limited.
It should include a responsible, measurement system for awarding variable pay. I recommend less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment.
Goal attainment should be rewarded for both individual and organizational goal achievement to foster teamwork and eliminate the “lone ranger” mentality.
Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success looks like. They should not reward checking items off a “to-do” list.
As the cost of benefits has increased, their place in a total compensation package has increased in importance. Shifting the costs of some benefits to employees is a last-option scenario.
:SugarwareZ-185: