Let’s look at a checklist of items to assist you in getting your Compensation Program ready for 2024:
- Perform external market analysis for all jobs in your organization. This keeps your wages competitive and does wonders for turnover and recruiting.
- Conduct pay equity analysis to ensure that employees doing similar work are paid appropriately based on factors such as performance, seniority, experience, education, training and geography.
- Embrace pay transparency by developing or updating salary ranges so you can communicate them to employees and applicants. Post good faith hiring ranges on your job openings to be compliant with pay transparency laws.
- Update job descriptions to make sure they’re accurate and meet all legal requirements. Remember, the Americans with Disabilities Act (ADA) requires you to list the essential job functions.
- Perform job evaluations to determine the relative value of new jobs in your organization. Knowing how much a position is worth is important, especially if it’s new!
- Administer salary and promotional increases to keep wages competitive. Great employees require great compensation, so make sure they’re adequately rewarded for their work and level of responsibility.
- Set bonus target percentages that fit the level of the job to remain competitive within your industry.
- Award stock options for special recognition and top-talent retention.
- Stay compliant with all wage laws and regulatory requirements. Here’s a big one: make sure that you are classifying employees correctly based on the Fair Labor Standards Act (FLSA).
- Communicate compensation program guidelines to managers and employees. Compensation systems are most effective when everyone knows how they work!
If you need help with any aspect of your organization’s Compensation Program, contact me and our team will be at your side to get your Compensation house in order for 2024.
Note: If you enjoyed this article, check out my award-winning and bestselling HR book Pay Matters: The Art and Science of Employee Compensation.
? 2023 David Weaver. All rights reserved.
Global Compensation Leader @ Univar Solutions | HR Strategy
1 年Jessica Pione - looks like we are ahead of the game!