No one knows how soon the economy will turn around
Sycamore, Ill. (PRWEB) April 8, 2009
Compensation is a hot topic, especially when economic times are tough. Compensation experts at KnowledgePay, Inc. have created a checklist of tips for decision-makers on managing compensation, available at http://www.knowledgepay.com/10tips1.html .
“In challenging times, corporate managers sometimes have to make tough decisions to improve the bottom line,” said Chris Kelley, KnowledgePay’s founder and chief executive officer. “But, even now they can make compensation decisions that will help their company prosper when the economy recovers.”
An organization’s compensation philosophy is integral to its culture. Even when difficult decisions are necessary, remaining consistent with the company’s core values, mission and vision will go far to encourage employee loyalty and discretionary effort. Companies that have always linked performance pay, for instance, should not change course and implement pay freezes, reductions or even layoffs based on unrelated factors.
Another tip from KnowledgePay is to manage compensation by facts, rather than fall prey to knee-jerk reactions. Managers with the discipline to rely on solid compensation data, rather than emotion or headlines, have the best chance of achieving positive, long-term business results.
Organizations should also regard the current crisis as an opportunity to review their overall rewards plan, to ensure it encourages behaviors that lead to company success. Management should focus on what is most important for their business to achieve, use their rewards plan to encourage those achievements and try to eliminate unintended consequences.
Corporate compensation practices receive intense scrutiny these days, especially with the amount of pay information available online and increased career mobility among workers. Staying focused on future successes won’t make today’s difficult decisions any easier, but it can improve those decisions – consistent with company culture, based on facts, and focused on improving business results.
“No one knows how soon the economy will turn around,” said Kelley. “In the meantime, HR and compensation professionals will keep trying to turn lemons into lemonade. ‘Ten Tips for Tough Times’ is designed to help.”
KnowledgePay, http://www.knowledgepay.com , delivers enterprise HR software with a relentless focus on compensation intelligence. KnowledgePay’s innovative on-demand technologies help organizations and their people succeed by maximizing engagement, alignment, passion and productivity. KnowledgePay solutions integrate all sources of compensation and job data with groundbreaking analytic tools to drive HR productivity and business results.
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.