HR News
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Evaluating Pay Program Effectiveness: A National Survey of
Compensation Professionals
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While the majority of managers admit the need for
systematic analysis of their pay programs, these evaluations are often
informal. Organizations on Fortune’s “Most Admired” list were found to be more
disciplined and rigorous in their assessment of pay program
effectiveness than organizations not earning this designation. A systematic
process for monitoring the effectiveness of pay programs is outlined in detail.
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Evaluating Pay Program Effectiveness
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Although compensation is often the largest controllable expense,
for many companies it is just a cost of doing business.
When return on investment (ROI) is measured, this number provides
little insight into why ROI exceeded, met, or did not meet management expectations.
This paper provides a systematic and comprehensive method for determining the
contribution a pay program makes to the “bottom line” and an evaluation process that
offers insight in how to improve the pay program’s effectiveness. Evaluation should
be built into the design of a new pay program to ensure its success and a plan for
implementing changes as the evaluation process suggests them.
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Upcoming Presentation
- Rewards "Best Practices": A National Survey of Compensation Professionals
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Chicago Compensation Association Breakfast Briefing - April 4, 2007
Presented with Tom Mcmullen and Richard Sperling
Rewarding employees represents a major financial investment that directly impacts organizational effectiveness and
competitiveness. This presentation reports our finding from a survey of over 5,000 compensation professionals who are members of WorldatWork and
the Chicago Compensation Association. The survey solicits open-ended responses providing deeper insights and more extensive information about
what reward programs work and why they work. A proposal has been submitted to present these findings at WorldatWork International Conference in Orlando, FL May 6-9, 2007.
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Upcoming Presentation
- Counter Offers: How Often Are They Used? Do They Work?
Strategies That Support Recruitment and Retention
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Chicago Compensation Association Breakfast Briefing - May 2, 2007
Presented with Tom Mcmullen and Richard Sperling
Although it is not uncommon for organizations to make counter-offers to employees who are in critical positions or who are
identified as high performers, few companies support a formal policy and if they do, most managers do not understand it anyway. We will present findings from a national
survey report on how managers respond to employees who receive job offers from other companies. Based on these findings, a counter-offer strategy is proposed for
retaining top talent in high impact positions.
Related articles by Dow Scott, Ph.D.
Contact PDII today to
discuss your situation and determine how we can assist you.
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