Compensation Clarity, Process, and Structure

Compensation angst is an issue that HR Consultants are
often called upon to help resolve.

Unfortunately, the resolution to salary concerns involves
the company having an objective strategy for the creation,
implementation, and communication of a compensation

Compensation equity, contrary to what employees may think,
is not about paying everyone the same or about paying
people enough to take money off the table as an issue.
It is about having everyone’s pay subject to clear,
logical, and explainable sets of rules and information.

In a fast-paced world where decisions are made
on-the-fly with limited information, executives often
pride themselves on their ability to make salary
decisions. The problem is the perception of these
decisions by employees.

To employees, compensation decision appear to be
completely arbitrary or at worst discriminatory (e.g., men
vs. women; minorities vs. whites) when they “come down
from the mountain top.”

If companies are going to defend themselves against equal
pay charges and/or discrimination, there needs to be a:
**Formal process in place for setting pay grades.
**Structure that identifies rules that will frame and
guide decisions.
**System for communicating the objectivity of the process
to employees.

See our Wage & Salary process at the link below:


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