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bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Rusty Lindquist
VP STRATEGIC HR INSIGHTS
BambooHR
Rita Pate...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
5 steps to set up your
compensation plan
Gain executive sup...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 1: Gain
Executive Support
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Payroll is, by far, a company’s
biggest expense; the cost o...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Pay is the number 3 reason people quit jobs
[BambooHR study...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Top Compensation Mistakes
• Not updating compensation regul...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation plans help
the bottom line.
1. They make good ...
– Ram Charan
Best-selling Author,
World-renowned Business Advisor
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
“If you pick the right people and give them
the opportunity...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 2: Define Your
Compensation Strategy
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Questions to ask:
• What is your market?
• What are your go...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
What is the right compensation
mix for your company?
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
—Harvard Business Review
“Keep the plan simple. It should b...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 3: Develop a Market-
Based Pay Structure
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Decide on the correct job evaluation method.
Market Pricing...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Choose the right data source
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 4: Build Pay Ranges
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Identify Market Differentials
Schedules preserve both compe...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Determine Your Pay Grades
The number of pay grades you use ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Some considerations include
• How wide should my ranges be?...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Evaluating employee placement in range.
Developing guidelin...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Use market data
Verify internal alignment
Assign Jobs to Gr...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Basic Function
& Key
Differentiators
• Administrative
Accou...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Step 5: Implement Total
Rewards Plan
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation Plan Element
• Philosophy
• Strategy
• Ranges
...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Budgeting for Increases
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Deal with Outliers
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Strategies: Equip Managers
• Educate them
• Give them the b...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
What can we do now?
1. Talk with executives about the need ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
COMP & CULTURE
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Everything you do
becomes part of that story…
The story of ...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation:
The story of
how much you are valued
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Compensation:
The keystone
of culture
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Follow BambooHR and PayScale on social media:
bamboohr.com/...
bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
Questions?
BambooHR
Receive a free job posting on our ATS a...
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bamboohr.com payscale.com 5 Steps to 5 Steps To A Smart Compensation Plan

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bamboohr.com payscale.com
5 Steps to a Smart Compensation Plan
“If you pick the right people and give them
the opportunity to spread their wings and
put compensation as a carrier behind it,
you almost don’t have to manage them.”
—Jack Welch

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