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Conduct an annual salary assessment. Optimize your salary structure by ensuring market positioning is competitive, internal equity issues are justifiable, and controls are effective. Competitive compensation is a moving target – it can, and often does, change quickly. That’s why regularly assessing competitiveness is so important; you want to be sure that your pay practices are aligned with your pay intentions. The longer you wait between assessments, the more likely that your pay practice will

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Conduct an annual salary assessment. Optimize your salary structure by ensuring market positioning is competitive, internal equity issues are justifiable, and controls are effective. Competitive compensation is a moving target – it can, and often does, change quickly. That’s why regularly assessing competitiveness is so important; you want to be sure that your pay practices are aligned with your pay intentions. The longer you wait between assessments, the more likely that your pay practice will be out of line with your intent – and, if it is, the discrepancy will typically just grow over time. The longer you wait between assessments, the more likely that your pay practice will be out of line with your intent – and, if it is, the discrepancy will typically just grow over time. If you aren’t checking market rates regularly, you are likely off-market. You could inadvertently be paying at a lower percentile because of an increase in the going rates for this position. Alternately, you could be paying at a higher percentile because the market has flooded and the going rate has decreased. There’s no way to know without collecting and evaluating market data.


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http://hr.mcleanco.com/research/ss/hr-conduct-an-annual-salary-assessment


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