Compensation Design

Compensation Design...

A process for establishing equity between what members contribute to an organization and what they receive for their efforts.

Compensation Design determines the value of specific, properly executed accomplishments toward the achievement of system desired outcomes. The value of the accomplishment, not the level of activity, is used to establish the nature and amount of compensation. Ultimately, compensation design should foster a productive and equitable, long-term relationship among members, and between each member and the organization.

The process begins by identifying desired outcomes for the organization, or operating unit. Importance and value are attached to the results people achieve with reference to the needs of the organization. Compensation is based on the achievement of results that are critical to organizational success.

The Compensation Design process will help you:

Determine the critical goals for your organization

Translate critical goals into realistic performance expectations

Establish specific performance responsibilities

Develop accurate performance measures

Compensate employees for results and value received