Overcoming the Top 5 HR Risks: #2 Employee Compensation

Jeff Agranoff, HR Consulting Principal, Grassi Advisors & Accountants

#2 Employee Compensation
With many companies focused on containing costs and freezing pay raises or bonuses during the economic downturn, it is more important than ever to be creative in the ways you are compensating your employees and communicating these benefits to them.

Utilizing a “total rewards strategy,” your company can demonstrate tangible and quantifiable benefits of working at your organization. Through a brochure or digital package, lay out the value of all benefits, salary, bonuses, health insurance, supplemental insurance, fringe benefits, paid time off and other employee-related costs that equate to the full value of their employment. Make sure to include all non-monetary and performance-based rewards.

Smart companies will take a “salary band” approach to setting employee salaries – defining a pay range for each level of employee and ensuring salaries fall within the appropriate one. Don’t wait for your employees to ask for competitive pay or find it somewhere else. Periodically benchmark your salaries against industry norms and make necessary adjustments. In addition to staying competitive, this strategy will help prevent inconsistencies between employees and make it easier to determine salary increases each year. 

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