Compensation
Fundamentals
Tailored advice and hands-on support towards creating and prioritizing programs, processes, and protocols that form the foundation of effective total rewards.
We define fundamental practices as the frameworks, plans, structures, policies, and processes that act as the foundation for effective total rewards. There are numerous reasons why fundamental practices are important but since we like alliteration, we highlight the 7 C’s:
Competitiveness: A competitive total rewards package is a crucial factor in attracting top talent. Creating rigour around how you define your competitive market, gathering credible data, and conducting market analysis are fundamental to establishing and maintaining competitive pay structures and total rewards plans.
Compliance: Implementing effective practices can help ensure compliance with legal and regulatory requirements such as minimum wage and overtime laws as well as Pay Equity.
Connection: Recognizing and effectively rewarding employees can increase employee engagement, performance, and belonging. In fact, organizations with integrated total rewards are two times more likely to say employees are engaged.
Consistency: Applying guidelines, plans, structures, and standardized processes across your total rewards function encourages consistency of decision-making and contributes to a fair and equitable employee experience. But policy alone won’t ensure the consistent application of your total rewards practices. We champion increased change management, communication, training, and coaching to sustain the impact of your total rewards.
Context: Solid total rewards practices will integrate internal and external data and insights that support evidence-based decision-making. This context in which your organization operates and under which your total rewards are developed and implemented plays a key role in determining what is fair, equitable, competitive, and sustainable for your employees and the organization as a whole.
Cost: Depending on your organization, the cost of your total rewards can represent anywhere from 30% to 70% of your organization’s total expenses. Deploying appropriate structures, guidelines, and/or processes will help your organization strike the right balance of fair, equitable, competitive, and sustainable total rewards.
Culture: A well-designed and implemented compensation strategy can support your organizational culture. Implementing and sustaining appropriate practices around job evaluation, pay equity, and market benchmarking as well as structures such as job hierarchies and pay ranges ensures that you keep the commitments articulated in your total rewards strategy and philosophy. These commitments may include fairness, equity, competitiveness, accountability, sustainability, transparency, and other values integral to your culture.
To learn more about our compensation and total rewards solutions, book a quick conversation with Kathleen Jinkerson, Vice President, HR & Total Rewards Solutions.
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