The Management Tip of the Week blog will present one tip each week based on content in the MDM Archives. Sign up for the RSS Feed for this blog here.
Your company's compensation plan should be more than just a static page in your employee handbook. It can be a strategic tool for ensuring your company's success in the long-term, according to HR specialist Patti Redden in A Compensation Strategy Review.
Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.
Using a proactive approach to for compensation review can help your company strike a balance between spend control and maintaining and rewarding talent. Focus on your business plan and strategic initiatives, but assess your talent pool against the business plan and identify how your top talent can help you achieve success. Be open to modifying and revamping your programs and practices as your strategic needs shift.
"Focus on the bottom line is critical; however, leaders should never underestimate the impact on human capital when reward programs and employment conditions are modified," Redden writes.
And remember the basics: do not lose sight of internal and external equity and the intrinsic value of appropriate compensation policies and pay practices. You may need to rebalance your program from top to bottom, but continue to maintain a balance between base pay, incentives, benefits, and work life programs.