“Kathy tied our compensation strategy to our business
strategy and philosophy. This has incredible cost implications. She had very creative ideas on how to deliver the most bang for the buck. She showed us how to get the employees what they needed, but cost-effectively, within budget.”
Human Resources Manager
Why Compensation Planning is Critical
to Your Business
Increasingly you are forced to make hard decisions about human capital investments as you work to contain costs and remain competitive. With salaries and benefits accounting for a large portion of corporate spending, reward plans are frequently early targets.
The challenge, according to a recent Watson Wyatt Survey, is to understand which reward programs to maintain or increase — and which to curtail or
eliminate — to simultaneously meet short-term cost containment needs and long-term attraction and retention objectives.
The same study shows that differentiating pay between top performing and average employees is associated with a significant increase in shareholder value. Yet less than 40% of top performing employees say their firms differentiate pay for top performers through moderately to significantly better pay raises, annual bonuses, or total pay.
Today’s compensation planning and management require a new level of creativity and data-driven decision making. The rewards of developing a compensation strategy, especially when coupled with effective human resource management are great:
- More effective recruiting
- Increased employee retention
- HR expense control
- Compensation tied to organization goals
- Critical & desired skills & behaviors rewarded
- Employees value rewards provided
To contact us:
KAK Compensation Services
Kathleen Ann Kitagawa, CCP®
1700 East Chula Vista Road
Tucson, Arizona 85718-1114