Local Trends in Compensation Policies & Strategies
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According to a research study conducted by ERC, the majority of employers (58%) have no written compensation policy. Twenty-percent of respondents indicate having a compensation policy that is confidential, and 21% have a written or published policy that is made available or distributed to employees.
Despite not having a compensation policy, 62% of employers report having a strategy to stay even with the area labor market and 49% have a strategy to stay even with industry competitors.
ERC's HR Help Desk notes that “the foundation of an effective compensation system is a philosophy, policy, and strategy for how your organization will pay employees relative to the market – whether that is above, at, or below market rates. This helps HR make decisions about pay and guides an organization’s compensation practices."
Additional Resources
- More information about accessing ERC survey data related to this topic: click here.
- More training and programs related to this topic: click here.
- Compensation & Benefits Consulting