The Compensation Analysis examines the financial burden and contribution of employees in an organization.
Many decision makers tend to ignore the compensation analysis and it is to their detriment for long-term success.
Many companies tout a boastful tag line or adopt a mission statement to the effect that customers are their “number one priority”. That is simply an unwise perspective to hold. Great companies prioritize their employees first. They understand that treating their team fairly will ensure long-term growth and success. Instead of focusing solely on attracting the next customer, they will develop compensation and enhancement plans necessary to spur the innovative thinking ability of every employee. Customer satisfaction with supreme business service is sure to follow.
In the eyes of inefficient leaders, these types of activities such as the Compensation Analysis can always wait. In essence, they consistently fall into this dangerous trap of believing that issues that are more important require their immediate attention, and inevitably perpetuate the cycle of constantly interview-hire-they leave and repeat again.
A Compensation Analysis accomplishes the following:
- Determines how increases or decreases in compensation will affect your overall profitability
- Determines if and how much bonuses the company can afford
- Determines if and how much benefits the company can afford
- Provide the intelligence you need to reward your best performers
- Provide the financial incentive models to challenge your team
- Understand the exact financial burden of every employee
- Provide the optimal staffing plan including the exact number of employees the company can sustain and remain profitable at the same time
- Provide the financial answers to determine which compensation model (Salary, Hourly, or Combination) is best suited for your company and financial goals
- Provide a simple model to reward hard work
- Reduce high turnover
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