First off, please introduce yourself and let the readers know what you do?
Generally speaking, how much of an organization’s budget is linked to its compensation program? Why is this important for people, particularly HR, to know?
It depends on the type of industry, in the restaurant/retail industry we see anywhere from about 30% to 50% of the budget for compensation and related costs. Some types of industries that aren’t as labor intensive don’t have costs quite this high, but it is always a large expense for any company. This obviously makes it a cost that is very important to the financial health of the company, and the money must be spent in a responsible manner.
Who owns comp-HR, Finance, or the CEO?
Compensation is an HR function and must be integrated with other HR functions. However, it really does cross over to other disciplines. I report officially to the SVP of HR, but I also spend a great deal of time with our CFO. Particularly when looking at equity compensation (stock) I have to work very closely with the Finance department. I personally think one of the best ways to make a real difference in Compensation is to have strong working relationships with both HR and Finance. Note to readers: this is the not the first HR pro to mention this (look here and here) so I would make a sincere and sustained effort to follow this advice.
How does a well crafted comp plan help companies?
Ideally compensation plans align employee’s efforts with required business results. For example, if a business needs to improve sales by 5%, employees are rewarded through a compensation plan for behaviors that result in sales improvements.
Can you describe some of the key differences bet. the compensation needs of a small business and larger corporations?
What is the link between compensation and Total Rewards?
What legal considerations must HR pros be aware of when it comes to comp?
What are some of the most common mistakes organizations make when it comes to comp? How can they be avoided?
What are some good resources for comp-related information, both online and off?