In a BLR webinar titled "Compensation 101: Essential Secrets and Strategies for HR Professionals," Paul R. Dorf outlined the best practices in an effective compensation program.
Any compensation program has to have consistent and unwavering top management support. This increases the likelihood that it will work. The program has to have clear objectives, and be consistent with company policies, procedures, and goals. This forces the company to think of what they want and how to get it.
- Compensation programs must have unwavering top management support.
- Aligning pay plans and performance management system with company mission leads to success.
- Good communications means no mixed messages.
- Include interested parties in design process to increase buy-in.
- Train management and staff in program use.
Remember, compensation is much more than just paying employees! Compensation allows the company to focus, attract, retain, and motivate employees. It forces the company to establish goals, and requires measuring results against those goals. Accountability is integral to success.
Paul Dorf is the Managing Director of Compensation Resources, Inc. (CRI). CRI (www.compensationresources.com) specializes in providing comprehensive Compensation and Human Resource consulting services. Dorf is responsible for directing consulting services in all areas of executive compensation, short and long term incentives, sales compensation, performance management programs, and salary admin programs.