5 considerations for your compensation philosophy

Published 1 Min Read

In 2019, 70% of firms either had a compensation philosophy or were working on creating one for their firm, according to Payscale. A healthy compensation philosophy sets the tone for compensation decisions at a company.

But what if your compensation philosophy is in need of a refresh? Or what if you’re one of the firms who is trying to create a comp philosophy that fits your firm’s unique positioning in the market? Where do you start?

Competitive positioning looks at the market around your firm, taking into consideration what peers are paying similar positions.

“Who are your peers, and how will your programs be targeted to those peers?” Hartmann says. To better understand competitive positioning, many firms participate in compensation surveys from firms like Mercer, Willis Towers Watson and Aon.

Maddy Simpson
Reporter

Maddy Simpson is a reporter for Employee Benefit News and Employee Benefit Adviser. Contact her at madeline (dot) simpson (@) arizent (dot) com.


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