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What is Compensation Philosophy ?
Human Resources » Compensation & Benefits


Chrm Message From: aishwaryaroy Total Posts: 36 Join Date: 25/11/2006
Rank: Executive Post Date: 26/03/2008 05:27:52 Points: 180 Location: United States

What does the compensation philosophy mean and how it can be used for recruitment and selection process ?

thanks for the help

Ash

Chrm Message From: proftandon Total Posts: 85 Join Date: 25/11/2006  
Rank: Manager Post Date: 26/03/2008 05:29:04 Points: 425 Location: United States

Dear Ash,

Most compensation philosophies have the same basic objectives: to attract, retain and motivate the best employees. But where you go from there determines whether the philosophy is a paper abstraction that sits on a shelf or a vital tool that allows you to equitably and consistently implement your compensation programs.

A well-crafted compensation philosophy "helps tell the story of who you are as an organization and what you value as an organization,"

Prof Tandon

Chrm Message From: rbiyer Total Posts: 3 Join Date: 25/11/2006  
Rank: Beginner Post Date: 30/04/2011 13:13:39 Points: 15 Location: United States
Adding to what Prof said, compensation philosophy refers to "organizations' compensation positioning to market compensation practice. For eg: company's compensation philosophy can be "positioning at market median" for all roles.

this would mean that this organization would carry out the compensation benchmarking exercise to understand the market compensation and offer industry median compensation for all roles in the organization

Hope this helps

Regards
Rajesh Balasubramanian
 
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