Many employers’ highest expenses are employee salaries and benefits and it is therefore important for companies to conduct a periodic compensation review.
Analysing your compensation packages allows you to remain competitive and anticipate how to budget for hiring needs and increasing benefits costs.
When carried out regularly, a compensation review will give you useful insights into how current salary bands and overall compensation packages impact employee engagement, retention, productivity and growth.
The terms compensation review and salary review are used interchangeably, but it’s important to note that some companies may distinguish between the two. While salary reviews are specifically base pay related, comp reviews may or may not include the following: base pay, commissions, overtime, bonuses, stock options, allowances, health care coverage, dental plans and more.
Communication, transparency and well-defined strategies are the key to compensation success.