stages of development - International Business Growth Radio Network

Creating a Pay Structure of Value - Angela Hooper-Menifield

10/12/2020

Angela Hooper-Menifield "The People Side of Business"

IBGR.Network - PROFIT Radio. Everything a business owner needs to start, grow or exit a business. Grow With Us.

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

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

What You Need to Do

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