Continuing our series of compensation topics, this week’s Astronology will review the basics of Pay for Performance programs. About 71% of organizations have a formal employee performance appraisal system.
An important part of compensation administration is the salary structure. According to Compensation Programs and Practices 2015, 87 percent of organizations have a formal salary structure in place.
The importance of job evaluation is simple. In order to create a competitive yet equitable compensation system, organizations need clear job classifications.
The compensation philosophy is the foundation for all compensation decisions an organization makes. Developing a compensation philosophy, however, is not always an easy task.
Thanks to Astronology® reader Milvana Grzan, of Memorial Sloan-Kettering Cancer Center, New York, NY, for providing this issue’s topic. Ms. Grzan asks how an organization can provide extra compensation to exempt staff without violating the Fair Labor Standards Act (FLSA).