Yesterday, Amy Letke, SPHR, GPHR of Integrity HR, Inc., took us through the ins and outs of aging factors: Lead, lag, or lead/lag—which is best for your organization? Today, she looks at additional considerations as you set out your compensation philosophy and strategy.
Tag: compensation plan
In strategizing salary budgets, employers often have to decide whether they want to lead, lag, or lead/lag the market rate. What factors play into aging market data to suit your employment needs? And when is it time to retire your current market data?
Working with outdated pay ranges can create turnover, pay equity issues, low morale, and legal challenges. Also, granting merit increases without an accurate budget or distribution methodology has the potential to damage your professional credibility. Is calling in a compensation consultant the only solution?
You may already have a mission statement in place at your organization. But do you have a formal compensation strategy document—a comp-specific mission statement, in other words? You need one, says Chuck Csizmar of CMC Compensation Group. Read on to find out why.
Innovation drives productivity and opens up new opportunities. The most innovative companies, from Apple® to Zappos, are also the most successful. But innovation requires flexibility, a willingness to change, and a good tolerance for risk—three things that aren’t always part of compensation management.
Avoiding Costly Workarounds that Can Lead You Astray Some companies try to cut corners by using contractor agreements to replace local employees, thus doing away with Social Security costs and payroll systems. Yet regulators in places such as Argentina and Brazil require contractors to provide information about their engagements with an overseas company in an […]
Here is Buglass’s helpful advice for how to avoid the costliest mistakes when growing your company in foreign countries. (Buglass, Vice President of Human Capital Consulting for Radius, is an expert on global employment law compensation and benefits, stock options, expatriate tax, and immigration-related issues.) Getting HR Right in a Global Expansion There is no […]
Case Study: Company Situation A large high-tech firm was experiencing a significant amount of annual turnover by their sales reps, says DiMisa, who is senior vice president and the head of the Sales Force Effectiveness Practice at Sibson Consulting. Initial analysis showed that the cost associated with the company’s turnover was more than $50 million […]
And it’s not just dollars, adds DiMisa, who is senior vice president and the head of the Sales Force Effectiveness Practice at Sibson Consulting. Your salespeople are the company’s ambassadors, the conduit to the customer, usually the first impression, and maybe the only impression. You don’t want the wrong people in those roles, DiMisa says. […]
Sales compensation philosophies should be in alignment with company objectives while still motivating the sales team—all without going over budget. This can be a challenge, but there are some tips to help employers get it right. The 5 ‘Rights’ of Sales Compensation “When we’re talking about sales compensation objectives, we define them as the 5 […]