The Importance of Performing a Compensation Study
You have an inkling your current compensation structure is not working in your organization. Your office manager is a fabulous performer, but she negotiated a higher salary than the base salary of your IT Manager. Your Operations Director was almost whisked away by a competitor last month for a higher, more competitive salary. You remember hearing something in the news about a new law where exempt employees must make a certain amount in order to legally remain salaried, but you don’t quite understand. All these signs point to needing a compensation study performed in your organization.
A compensation study examines your current pay practices and determines what changes need to be made, based on the size, industry, and location of your business. Each role is analyzed and compared to external salary ranges of people doing similar work within a similar region. Current employees’ levels are reviewed. Other employee benefits such as health care, employee discounts, and more should be considered as well. The goal is to attract and retain the best and brightest talent possible.
If a thorough compensation study is conducted every three years or so, your organization will be able to find ways to get and keep high performing employees happy and engaged.
If you need assistance reviewing your current compensation plans or are contemplating building a new strategy for your current compensation structure, reach out to McGroarty & Co. today. We have HR Consultants available to help you.