Effective employee compensation plans can set the stage for effective recruiting as well as employee retention. This is because the employee compensation plan should articulate a distinctive value proposition that will inspire and guide the team in the right direction.
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“Properly developed, this makes a powerful statement internally to your employees as well as externally about what type of a company you are. You’re putting that stake in the ground. You’re establishing a brand identifier that could be very powerful—not only from a retention standpoint, but from an employee attraction standpoint.” Chuck Csizmar explained in a BLR webinar.
The compensation plan lays out the overall statements of belief around which to design, administer and communicate reward programs. It becomes the “stake in the ground” that reinforces the culture and management style. It tells employees what you stand for.
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