Creating a Pay Structure of Value - Angela Hooper-Menifield

Angela Hooper-Menifield "The People Side of Business"

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Introduction
When business owners begin to compete for the best talent for their business, they have to approach salary and compensation with considerations that include being both prudent and competitive while ensuring talent ‘feels’ valued.  This thinking must not only be comparable with competitors in their industry but also align within the organization.  Today’s show will discuss how business owners can create compensation for their teams and organizations in a manner that is fair and equitable both inside and outside the organization and demonstrates value for the characteristics and results desired.

Show Objectives

How to Define Your Organizational Pay Strategy
Evaluating the various pay strategies (Lag, Match or Lead)
Understanding the various types of internal compensation


Key Issues

1. develop pay bands - based on the local market what is the minimum, average, and maximum paid for the position
2. evaluate where in the band each employee falls
3. develop a plan to bring everyone to comparative levels - slightly below average 
4. determine how much of each salary/wage you want to make variable
5. develop a pay4performance plan

What You Need to Do

1. Communicate your Pay Strategy and Ensure Compensation is in Harmony with Strategy
2. Determine where on the spectrum the compensation will reside
3. Utilize effective communication mediums to communicate the strategy and gain buy-in

Shows
Previous: Episode P4.09.3 Rewarding the Collective for the Success of the Individuals

Next: Episode P4.11.3 Delegation: Knowing the When, Who & Why

Written by Angela Hooper-Menifield
“The People Side of Business”
Podcast - https://pod.co/the-people-side-of-business-with-angela-hooper-menifield
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