The compensation philosophy is a formal statement documenting the organization’s strategic position about employee pay. It explains the “why” behind employee pay and creates a framework for consistency, while also serving as the ‘true north’ for the administration of your salary budget within your organization.
Richardson Compensation Consulting, LLC can help your leadership team design a customized compensation philosophy based on organizational factors including but not limited to:
- Financial position
- Organization size
- Industry Affiliation
- Strategic Plan
- Business Objectives
- Market Salary Information
- Recruiting Landscape
- Other Unique Organization Circumstances
A sound compensation philosophy is critical to your compensation program, since it is critical to the success of your human resources strategy. Being transparent with your compensation philosophy and having an official pay strategy is crucial to the successful administration of your salary budget and total rewards program.