Compensation Will Not Drive Results….

Compensation Will Not Drive Results….

By: Jim Gitney   |     November 8, 2014

Human Resources ConsultantsUnless your compensation strategies are tied to your business strategies, you shouldn’t expect effective strategic execution, an organization that is properly focused and great results. Compensation practices are a key element of how you manage, engage and motivate your employees. NOW is the time to assess the effectiveness of your compensation systems. Ask yourself; Do we really know how effective our compensation practices are?  Getting the answer to this question requires asking the right questions and following a process such as a Human Resources Assessment.

Over the past several years compensation programs have generally focused on cutting costs, but as the economy rebounds, your Human Resource systems need to deliver the right people at the right time with the right skills and position your business for renewed growth. An effective assessment of your compensation strategies will require answering questions from the following three categories; Compensation Strategy

  • Is your strategy “to be the leaders in our industry” or simply to “get folks in the door?”
  • Do you discuss and manage Total Compensation or just base pay?
  • Is your strategy clear and understood by your employees?
  • Are your variable Comp Plans (Exec and Sales) delivering the results and behaviors you need?
  • If you have a “pay for performance” program, is it driving performance and what are the metrics you are using to determine that?
  • Are your pay systems and job descriptions aligned and driving peak performance?
  • Are your compensation systems delivering a clear ROI?

Attract, Engage/Motivate and Retain

  • Are you paying appropriately to attract the knowledge, skill and capabilities required to deliver your current and future business needs? And NOT paying over paying?
  • Are you clear on who your competitors for talent are and how they manage their compensation?
  • Do you have a communication plan that ensures your employees are clear on how your systems work? Remember, regardless of your stated policies, your employees are discussing your plans and what they are paid!


  • Are you in compliance with Minimum wages, current tax regulations and FICA?
  • Are you certain a Diversity Audit will stand the test?
  • Are your Executive and incentive plans aligned with the new regulations? Will they hold up under the microscope of a review by the board, your shareholders or the media?

If you can’t shout YES for each of these questions, assess your compensation systems to determine key opportunities and to develop a plan to close any gaps. Remember, your people deliver EVERY SUCCESS in your organization! 


If you want to find out more about the Group50’s Organizational Development Practice, call Bruce Dougan at (513) 508-0351 or email info@group50.comGroup50’s focus is working with our clients to develop a culture of effective strategic execution. Group50 takes a holistic approach to effective strategic execution utilizing proprietary methodologies and tools that are sustainable and scalable. We approach all projects with a focus on alignment, integration and optimization in support of the company’s strategic objectives.

This entry was posted in Organizational Development, on November 8, 2014

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