Putting your organization’s salary policy/guidelines in writing should take place before making salary decisions. Having a written set of guidelines accomplishes the following important functions:
- It ensures that compensation practices are consistently administered throughout the organization.
- Due to the consistency in application, it mitigates risk of unfair salary decisions.
It serves as a transparent & definitive reference source for new leaders in making sound salary decisions.
Many organizations are reluctant to document their salary policies and practices for fear of being labeled too ‘bureaucratic’, but regardless of the size of your organization it’s important to think about the role that salary will play in successful recruiting & retention. Documenting your salary policies/guidelines provides your organization with a starting point for salary discussions. Well-conceived guidelines will reduce morale problems, turnover, and even disapproval from financial stakeholders.
Either as part of a complete compensation study or as a stand-alone project, Richardson Compensation Consulting, LLC can lead the development of a set of salary policies/guidelines for your organization. The salary policy/guidelines can serve as the definitive resource for ensuring that specific salary decisions are compliant with the intended policy and compliant with your organizations’ HR strategy.