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Design a Successful Compensation System Presidio Pay 设计成功薪酬体系要塞支付
DESIGN A SUCCESSFUL COMPENSATION SYSTEM August 17, 2004 TODAY’S DISCUSSION Compensation Philosophy What is a comp philosophy? Why do we need one? How to develop one for your company Compensation Systems What makes them successful? Four fundamental components Program design examples After the Design – What’s Next Tips for effective administration Managing change COMPENSATION PHILOSOPHY What is a compensation philosophy? Articulates what the company believes about how its employees should be treated financially Provides guiding principles for designing cohesive compensation programs Lays out what is important to the company Communicates a consistent and clear message Should be backed up by the company’s actions COMPENSATION PHILOSOPHY Your stated philosophy should reflect the company’s intentions and set expectations for employees. Example statements: Efforts will be recognized, but results will be rewarded. Employees with the greatest level of sustained performance receive the greatest rewards in pay. Solid performers will be targeted at 50th percentile. Top performers will be targeted at 75th percentile. By linking pay opportunities to clearly outlined individual performance objectives, we offer every employee an equal chance to succeed. All employees should share in the financial success of the company. Our compensation programs are globally focused, locally competitive. We want all employees to think like owners, which is why we award stock options to every employee. COMPENSATION PHILOSOPHY Why do you need an explicit compensation philosophy? Managers might be making compensation decisions that are not in the best interests of the company as a whole There may be an implicit philosophy that isn’t consistent across the company Look at employee communications over the years Informally survey top managers of the company What do the current compensation programs look like and what do they “say” about the company’s beliefs? Does the corporate culture offer any c
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