In Preparation for the Flight Review Cfis Should Develop a Plan of Action That Includes

Once over again, we have some other great guest author, Zachary Weinberger, Managing Consultant of Remuneration Resources, sharing his wisdom of bounty and benefits. Zachary is an feel global consultant, business organization advisor, and an expert in compensation, benefits, and global rewards.He has worked in big, medium, and small companies, both for-profit and not-for-profit, every bit an executive and internal consultant, or as an external consultant helping accost the total range of human resources issues. Zachary has lived and worked in Latin America and the Eye Eastward and has worked on half-dozen of the vii continents.  We'll let Zachary take it from here.

An organization can have many reasons for reviewing its compensation and/or benefits programs. Here are 5 of the elevation reasons to consider a bounty and benefits review.

ane. To exist sure your practices are aligned with organisation strategy

To solve firsthand problems new comp and benefit programs are put in place.  This is good for the event addressed, but may non consider integration with existing programs or alignment with company philosophy or strategy.  A review tin can place where things are aligned and if there are inconsistencies.  After a review, decisions can exist fabricated about needed change.

2. To exist sure programs withal support your objectives

Over time, organizational objectives may alter and compensation and benefits programs may no longer back up new objectives. Therefore, unintended consequences from compensation plans may arise. For example, a bonus plan that emphasizes elevation line acquirement may generate a lot of sales but could encourage deep discounting that leads to poor bottom line operation.

3. To prepare for growth or expansion

As you prepare to move to new markets agreement competitive practices in those markets will help you concenter and retain talent.  It will also help y'all establish sustainable costs relative to your competitors.  Compensation practices in one location tin can be very different from those in another—particularly beyond international borders.  Yous don't want to offering also petty or pay too much.

iv. To ensure competitive practices

Information technology is of import to review your compensation and benefits plan periodically. If y'all have very high or very low employee turnover, it's a sign that bounty and benefits programs are not competitive.

5. To ensure legal compliance

Countries around the globe have laws and regulations impacting bounty and benefits programs. New laws and regulations are enacted all the time, making it easy to fall out of compliance and risking fines and penalties. Every bit a result, a periodic review can help manage this risk.

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Other reasons for a compensation and benefits review include improving efficiency, creating consistency, or managing costs.  A review can be as focused or every bit comprehensive as needed.  For example, if yous are concerned nearly the competitive practice in one land or location, focus on benchmarking in that location.  Or, if time has led to inconsistencies beyond your concern and it has become difficult to efficiently manage and administer the almanac merit and bonus processes, use a more comprehensive review and action plan. As previously mentioned, there are lots of situations that can benefit from a bounty and/or benefits review.

Here are some great resources for understanding compensation and benefits best practices:

• This article by SHRM titled "The Art of Setting Pay"
• From the EEOC a chapter from its compliance manual on "Compensation Discrimination"
• Summary of major laws enforced past the U.s.a. Department of Labor

Thank you for reading!

Zachary Weinberger

Managing Consultant

Remuneration Resources

Ensure Accurate Compensation and Benefits When Going Global

Practice yous have more than questions about compensation and benefits reviews?  We are e'er happy to get-go a conversation. Velocity Global's suite of global expansion services that includes our global Employer of Tape solution has fabricated global expansion a reality for hundreds of companies in over 185 countries—and we tin can do the same for your arrangement's compensation, benefits, and other needs. Are y'all ready to bring together hundreds of other organizations that take realized their global expansion goals?

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Source: https://velocityglobal.com/blog/5-reasons-compensation-and-benefits-review/

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