Looking for ways to ensure your organization’s pay practices are delivering the desired results? Want to create an environment of accountability and clear rewards for reaching goals and targets?
Here are a few action items we at Sprigg would suggest could help create a better pay structure:
Be clear about how you want to position your organization’s compensation offering relative to competitive market practice: While many organizations align their compensation with the market median, some may want to take a more- or less-aggressive positioning relative to market.
Review how your pay levels compare to market, using credible compensation surveys that are appropriate for your organization: Consider the types of jobs covered, as well as the organizations, industries and geographies represented in the data when selecting compensation data sources.
Adjust the ranges in your salary structure so they remain in alignment with competitive market practice: To ensure your compensation programs remain competitive, you need to stay on top of what’s happening in the market. That means doing your homework and getting the real story — even if it’s not what people want to hear.
For example, if you haven’t adjusted your base pay structure in a few years, it may seem like you’re paying well because employees may be high in their range. But if the market reference points in the structure aren’t aligned with current market practice, you may be sugarcoating a real problem that could lead to costly talent challenges in the near future.
When it comes to managing compensation, it pays to know how you align with competitive market practice. For more helpful insights into managing and recognizing your employees, contact the Sprigg team today!