Rebecca Irving’s Post

“Only 20 percent of people say they understand how their employer determines pay,” according to Entrepreneur Media. Payscale 2017 Compensation Best Practices Report showed that “31 percent of employers said their company had a transparent pay policy. (Yikes!! Is HR throwing 🎯 when offering compensation?) In a white paper by Diane Leary, pay philosophy is, in its simplest terms, how cash and incentives are used to drive the behaviors. A pay philosophy provides the framework for how pay decisions are made. A company should have a clear, written salary plan for each position and guidelines for hiring talent. The most critical part of a compensation philosophy is determining where the company will pay relative to the market rate. Whether it’s 50th percentile or 90th, it’s essential that this standard is applied consistently across every individual and role. Let me explain why this information is important: If you're actively seeking employment or aiming for a promotion, it's beneficial to utilize your network to gather insights on how compensation is determined within the organization. I once worked for a company that *tried* to make things equitable by using a salary calculator-- paying all employees based on months of experience within the role’s range. If you are a high performer, knowing this could raise a red flag for you. Do you know how your organization determines comp? #jobseeking #compensation

Are you curious about what lies beneath the surface of a company's salary structure? Unravel the mysteries hidden within compensation practices as we delve into 15 revealing insights that can shed light on a company's values, employee treatment, and overall financial health. From pay equity and performance incentives to clues about workplace culture and long-term stability, we'll unveil the fascinating stories told by a company's salary structure. Join us as we decode the intricacies and gain a deeper understanding of what truly lies behind those numbers. 15 Things You Can Tell From A Company’s Salary Structure https://lnkd.in/dJcyvH38

I recently read an insightful guide on salary benchmarking from RCReports, Inc., and it’s a must-read for anyone looking to make informed compensation decisions. Why? a) Comprehensive Market Research: Understand industry standards and regional trends to stay competitive b) Ensuring Internal Equity: Maintain fairness and transparency within your organization c) Role-Specific Analysis: Tailor compensation to the unique responsibilities and qualifications of each role Check out the full article here - https://lnkd.in/gC26Gp7T Thanks, Michaela, Abbie & team for sharing this insightful piece of content! #SalaryBenchmarking

We're working with more and more clients who need extra support with sense checking their compensation, so here are some of People Collective top tips when it comes to the key factors to consider in compensation alignment 🔑 📈 Market Benchmarking Conducting regular market benchmarking is essential to stay updated with the latest compensation trends. This involves comparing your salary bands with those of similar roles in the industry. Market data can provide insights into the standard pay rates and help you adjust your compensation strategy accordingly. 🚀 Role-Specific Pay Strategies Different roles and job families within your organisation may require unique compensation strategies. For instance, technical roles might command higher salaries compared to administrative positions due to the demand and skill set required. Tailoring your pay strategy to fit specific roles ensures you remain competitive in attracting talent for all job types. 🌎 Geographic Adjustments Location plays a significant role in compensation. The cost of living and cost of labour (market rates) can vary significantly across different regions. Adjusting your salary bands to reflect geographic variations ensures that you offer competitive pay irrespective of location, which is particularly important for organisations with a distributed workforce. 🔁 Regular Reviews and Adjustments The job market is dynamic, and compensation trends can change rapidly. Conducting regular reviews of your salary bands and making necessary adjustments ensures that your compensation strategy remains relevant and competitive. This proactive approach helps in addressing any discrepancies before they become significant issues. https://lnkd.in/eXySAaDu

If you're in HR working through compensation, pay transparency or salary benchmarking right now, you HAVE to check our this Open-Source guide shared yesterday by Alistair Fraser at Justly. 👀 🔥 🚀 It is by far the best open-source resource I have seen on the topic of pay & comp and covers so much of what you need on that journey. 1️⃣ Set up & Discovery 2️⃣ Market Data 3️⃣ Job Architecture 4️⃣ Compensation Philosophy & Bands 5️⃣ Pay Equity 6️⃣ Education & Launch This topic is top of mind for SO many companies right now. I would highly recommend bookmarking this from Alistair- it'll be a godsend. Please re-post ♻ , tag, share with others in your team too 🙏 🔗 https://lnkd.in/eDKNnJGQ

How crucial is salary structure for a Company Salary structure is crucial for several reasons. Firstly, it ensures fairness and equity within an organization by establishing a systematic way to determine compensation based on factors such as job responsibilities, skills, and experience.  It is also designed to neutralize biases and help companies offer equal pay for equal work. Secondly, a well-designed salary structure can aid in attracting and retaining talent. When employees perceive that their compensation is competitive and aligned with industry standards, they are more likely to stay with the company. Additionally, a transparent salary structure can serve as a valuable recruitment tool, attracting top talent who are looking for organizations that prioritize fairness and transparency. Furthermore, This can lead to increased motivation, engagement, and satisfaction among employees. From a management perspective, a well-defined salary structure facilitates budgeting and financial planning by providing a framework for allocating resources effectively. It also helps in making informed decisions about promotions, bonuses, and other forms of compensation. #curcol

As we look to 2024, employers are directing their attention toward compensation strategy as an integral part of business strategy. Check out the blog today to learn more about the importance of salary benchmarking and how Atrium's 2024 Salary Guides can help give you a competitive edge.  #blog #salarybenchmarking #salaryguide https://lnkd.in/eiA6piZd

People people, check this awesome guide on salary benchmarking and pay transparency from Alistair Fraser 🔥🔥🔥

Recent pay transparency policies around the world have brought greater attention to the importance of fair salary practices in the workplace. 🎯 Setting salaries is a balancing act. Organizations want to steer clear of being overly generous, as it can be wasteful, while also making sure pay packages are enticing enough to draw, keep, and inspire teams. 💡 A key solution lies in 𝐒𝐚𝐥𝐚𝐫𝐲 𝐁𝐞𝐧𝐜𝐡𝐦𝐚𝐫𝐤𝐢𝐧𝐠: using aggregated market data to establish competitive pay rates. 💵 "Whether the company wants to make a more or less aggressive offer depends critically on what the firm believes is the market value of the job candidate: i.e., how much other firms are willing to pay for the job candidate" says an article by Harvard Business Review. 📊 That’s where salary benchmarking comes in: firms can use data on the offers accepted by similar employees (e.g., with the same position title and industry) to make sure that their offer is at par with the standard. Salary benchmarking helps to: ➡ Improve employee retention rates ➡ Contribute to a fair work environment ➡ Make non-discriminatory decisions ➡ Boost recruitment efforts Learn more about the research in this area in the article below by authors Zoë Cullen, Shengwu Li, Ricardo Perez-Truglia, Annemarie Schaefer - MBA, MSMR and Brent Weiss in Harvard Business Review. 💡Athena Executive Search & Consulting (AESC) is a global consulting firm with vast experience in supporting organizations looking to onboard leadership talent across critical business functions. Over the years, we have provided solutions to complex problems covering the entire Talent Management spectrum to organizations in numerous industries. #salarybenchmarking #compensationandbenefits #payrollmanagement #paytransparency #executivesearch #leadershiphiring