Compensation Plan "Do's and Don'ts" - Webinar (Recorded)

The compensation program of the company should attract the right people to the right jobs at the right time and place. It should utilize the monetary resources of the firm and should provide the incentive necessary to produce employee engagement and drive organizational success.

However, the workplace has changed as a result of the pandemic. There is ever-increasing pressure on HR to fill jobs in a tight labor market. Potential employees are asking for more transparency in their pay and benefits and they want to feel like they are being treated fairly and equitably. Technology allows both prospective employees and current staff to see what the “competition” is doing and communicate, via social media, with others in ways that were not available a few years ago.

So, the world of compensation is shifting and you need to shift with it. This webinar will examine some of the new rules under the shifting sand of compensation philosophy and practice.

Why you should Attend

A compensation program gives employees a complete package of pay, rewards, and incentives. They are designed to appeal to employees and keep them at your company and, ideally, improve retention and job performance.

There are four major types of rewards in a compensation program:

• Extrinsic Rewards. These are tangible rewards. Companies reward their employees with extrinsic rewards to acknowledge and encourage the employees' achievements. The most common extrinsic rewards are money and gifts. Research has shown that this type of motivation is not sustainable. This is why we need other forms of compensation
• Intrinsic rewards come from the work itself. Work that is 'worth doing' and that seems to make a difference is intrinsic. Sometimes the best way to reward your employees is by giving them praise and recognition
• Monetary rewards are a great way to recognize employees' efforts and help motivate them to continue doing good work. Non-monetary rewards are when the employee does not receive the money directly. An example of this is to send employees a gift card to their favorite coffee shop or restaurant
• Reward systems must be aligned with employees' performance and what they value. That means they must be relevant. A great way to do that is to focus on what employees value
• A basic principle of rewarding employees is 'equity.' This principle says that rewards should be perceived as equitable and fair
• Meaningful rewards create a sense of trust among workers. For rewards to be equitable, they must be perceived as relatively equal. It must be comparable between the organization's employees or to what people get for the same job in another organization
• For rewards to be effective, they must be visible and seen by the employees. A visible reward helps employees to feel that their hard work is appreciated. It also provides a sense of personal reward, which will encourage them to improve their performances
• The more visible the rewards, the better!
• Rewards should be flexible and varied over time to meet employees' changing needs, lifestyles, and career stages
• Flexible rewards allow employers to respond to the changes in the business environment and adjust the mix of rewards on an ongoing basis. Flexible rewards change along with changes in performance at work
• When choosing rewards, we should take into account the cost of the program and the return on investment
• This webinar will examine the changes in the workforce and what employers should do to adjust to those changes

Areas Covered in the Session

• Workforce and workplace changes post-pandemic
• Aligning strategic objectives and the compensation program
• Focusing on internal and external equity
• Aligning compensation programs with the organizational culture
• Communication and transparency in compensation programs
• Legal compliance in compensation systems