Organizations should constantly review its compensation package to ensure it is competitive with the current market conditions. Many companies attempt to offset salaries with benefits such as premium medical plans, 401k matching, and stock options. Yet, some employees still feel as though they are under compensated for their talents and contributions to the company.
Think about your current yearly compensation plan at your organization, a previous organization, or if you don’t have options other than a salary, you can research plans online (please be sure to reference the company used). Compensation extends beyond just the paycheck provided to you. It includes medical coverage, tuition reimbursement, flex spending account options, etc.
Analyze the compensation plan and address the following questions:
- Is the compensation plan attractive enough to retain current employees and recruit new talent? Identify the key elements that serve as a positive draw of this talent to your organization.
- Recommend areas for improvement. For example, if the compensation plan does not include 401k investing, why should your company consider including that as part of the compensation package.