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    1) Get A Pulse On Your Market: Please Discuss How To Establish A Market-Competitive Pay Plan

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    Ivan Trisnio
    The document discusses how to establish a market-competitive pay plan in 5 steps: 1) Get a pulse on current market pay trends to ensure your company's compensation plan remains competitive. 2) Benchmark your job positions' pay against the market to identify positions at high risk of turnover. 3) Develop a formal compensation plan to structure pay decisions and support business goals as the company grows. 4) Identify any pay inequities across roles and departments to avoid issues. 5) Communicate your compensation strategy to employees to boost morale by linking pay to business goals and individual contributions.

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    1) Get A Pulse On Your Market: Please Discuss How To Establish A Market-Competitive Pay Plan

    Uploaded by

    Ivan Trisnio
    33 views2 pages
    The document discusses how to establish a market-competitive pay plan in 5 steps: 1) Get a pulse on current market pay trends to ensure your company's compensation plan remains competitive. 2) Benchmark your job positions' pay against the market to identify positions at high risk of turnover. 3) Develop a formal compensation plan to structure pay decisions and support business goals as the company grows. 4) Identify any pay inequities across roles and departments to avoid issues. 5) Communicate your compensation strategy to employees to boost morale by linking pay to business goals and individual contributions.

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    GSLC HRM.docx

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    The document discusses how to establish a market-competitive pay plan in 5 steps: 1) Get a pulse on current market pay trends to ensure your company's compensation plan remains competitive. 2) Benchmark your job positions' pay against the market to identify positions at high risk of turnover. 3) Develop a formal compensation plan to structure pay decisions and support business goals as the company grows. 4) Identify any pay inequities across roles and departments to avoid issues. 5) Communicate your compensation strategy to employees to boost morale by linking pay to business goals and individual contributions.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    33 views2 pages

    1) Get A Pulse On Your Market: Please Discuss How To Establish A Market-Competitive Pay Plan

    Uploaded by

    Ivan Trisnio
    The document discusses how to establish a market-competitive pay plan in 5 steps: 1) Get a pulse on current market pay trends to ensure your company's compensation plan remains competitive. 2) Benchmark your job positions' pay against the market to identify positions at high risk of turnover. 3) Develop a formal compensation plan to structure pay decisions and support business goals as the company grows. 4) Identify any pay inequities across roles and departments to avoid issues. 5) Communicate your compensation strategy to employees to boost morale by linking pay to business goals and individual contributions.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Ivan Trisnio

    LF-21 / 2101660512

    GSLC Human Resources Management

    Please discuss how to establish a market-competitive pay plan

    1) Get a Pulse on Your Market

    After a series of wage declines in 2009 and 2010, a number of industries are now seeing
    continual salary growth across multiple industries and locations. If your company’s
    compensation plan is based on the trends in those leaner years immediately after the recession,
    it’s probably time to revisit your pay strategy. Or you may be at risk of losing talent to
    competitors who’ve more quickly adapted to shifts in the market. Keep an eye on the PayScale
    Index to keep track of quarterly trends in pay by location, industry and job category.

    2) Benchmark Your Job Positions

    It’s great to have a pulse on the overarching pay trends in your industry and area, but it’s another
    thing to have confidence that you’re actually paying top employees at the right rates for their job.
    By engaging in at least once-per-year salary benchmarking, you’ll be able to identify employees
    who are at a “high flight risk” of turnover, and be able to make smarter decisions about where
    you allocate your labor budget..

    3) Develop a Compensation Plan

    Often times, businesses fear that having a compensation plan will limit their ability to make good
    business decisions, so they skip building a compensation plan in favor of fewer rules and less
    structure. But without a formalized compensation plan, companies often miss an opportunity to
    structure their pay decisions in a way that support business goals. As companies grow, the costs
    of compensation continue to rise, and without a formalized plan in place, companies often
    experience problems with pay inequities, employee retention, and engagement. Simply put, it’s
    easier, and more cost-effective to take small steps toward developing a smart compensation plan
    now, than it is to alter your course later down the line.

    4) Identify Pay Inequities

    Some people live by the motto, “What you don’t know won’t hurt you.” That’s a motto your
    organization cannot afford to live by when it comes to internal pay inequities. Without a
    formalized comp plan, it’s often common for pay inequities to develop across organizations and
    departments. Those pay inequities can most definitely hurt you and your organization in the form
    of heightened turnover, over payment, and even litigation. Learn how to identify and resolve
    these inequities with PayScale’s guide to pay inequities.
    5) Communicate Your Compensation Strategy

    If you go through the process of creating a compensation plan, don’t forget to let your employees
    know about it. In theory, your compensation strategy should reiterate and support your business
    goals. So, it’s important to communicate to employees how their work aligns with the goals of
    the organization, and how their compensation reflects that. If you share with your employees,
    and make your investments in talent clear to them, you’ll be surprised by the positive effect it has
    on employee morale.

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