People Analytics Design Company

Learning

“Make everything simpler, but not simple” - Albert Einstein

Compensation Philosophy / Compensation Strategy

Compensation philosophy or strategy represents the standards, goals, and plans by which those responsible for employee compensation will help the company prioritize available budgets to achieve the goals of the company through better control over employee attraction, motivation, and retention. Some of the various concepts that can be applied and measured include internal equity and fairness (similarity in pay among similar jobs), market differentiation (comparison to pay at other companies), and how the company chooses to compensate differently for different experience, competency, tenure, performance and job importance.