SingleSprout and AllVoices led an insightful conversation around Compensation & Effective Planning.
Lessons learned from our event with AllVoices: It all starts with a compensation philosophy. Here are 5 tips when developing your compensation philosophy and pay ranges.
- There is no one-size fits all approach, and no company is 100 percent right.
- Develop a basic compensation philosophy, as well as compensation levels & bands. Even a basic framework will be helpful to guide decisions. Over time you can develop greater competencies, and get more complex or specific.
- Which compensation types are available to you? Salary, Short-term incentives or bonuses, Equity, Allowances or Perks, or Year-End Bonuses? Understand available options constraints
- What are you trying to achieve? Are you worried about retention, how people are going to progress, reward structure, promotions, transfers, new hires, or competition?
- Cost of Living vs Cost of Labor. The cost of living varies by location, highly driven by personal preference. So when we look to build ranges consistently, the metric that most compensation professionals use is Cost of Labor because it’s driven by supply and demand.
Special thanks to Ashley Perryman, SHRM-SCP, Vice President, Global Human Resources-Head of People at Spiceworks Ziff Davis; Enrique J Esclusa, Co-Founder at Assemble; Kaitlyn Knopp, CEO/Founder of Pequity; Mykaela Doane, Head of People and Talent – Gtmhub; Natan Fisher, Co-Founder, and Co-CEO of SingleSprout
To learn more, check out the webinar here.