About one-third of HR professionals say that their company conducts annual self-audits of their compensation plans, according to a recent Compensation.BLR.com survey.
When asked, "Do you conduct self-audits of your compensation plans?," 32 percent responded "Yes, annually" and an additional 16 percent reported that they conducted self audits "every few years." Meanwhile, 24 percent responded "No, we'd like to, but lack time or resources," and another 23 percent responded "No, we've never deemed it necessary."
In a recent interview in BLR's Best Practices in Compensation & Benefits newsletter, Stephanie Thomas, Ph.D., a principal with global expert services firm LEGC, LLC, recommended that companies perform a thorough audit of their compensation programs at least annually.
Thomas acknowledged that a compensation plan self-audit may seem intimidating, and it's true that you may want to seek expertise to help you the first time through. But once the tracks are laid, you can follow them every year or so to learn whether your compensation plans are doing what you want them to--or whether they are not. She also provided the reasons why companies conduct self-audits and how to go about the process.
Compensation.BLR.com subscribers can access the article here.