Available from Fox Lawson & Associates, a Division of GBS
Compensation management is something every company must think about from time to time. The field of business is constantly changing, and what worked yesterday may not always be the right solution today, especially when it comes to compensating employees. The cost of living continually goes up and good economic times create an intense competition for employees that often results in lavish incentive packages for even lower level workers. Even when times take a downward turn, people still expect generous rewards, which can cause companies to lose employees to competitors when those people are needed to most, just because the budget would not allow for continued bonuses. However, proper compensation management can give a company the tools it needs to keep good employees and attract new ones in both good and bad economic times.
A compensation consultant is the best way for human resources personnel to gain experience and knowledge in compensation management. A consultant will evaluate a company's incentive packages and current pay scale, and balance that with the company's budget and future plans. After intensive analysis, an equitable solution can usually be reached that will prove both attractive to employees and applicants, and beneficial to the company's finances.