How To Develop An Effective Employee Compensation Strategy

There are a number of different factors that must be taken into account when crafting a strategy for employee compensation, according to chief HR Strategist for the Home Furnishings Association Tracy Jackson.

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Perhaps most importantly, your company will of course want to make sure that employee incentives and business objectives are properly aligned. Also, you want your strategy to clearly display that it is not arbitrary and that bonus and raise structures will be reliably used in a predictable and consistent fashion proportional to workload and success.

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You can read more about employee compensation structures - including when you might want to be paying above/at/below average market value - here.