Purple Ink’s VP of Coaching and Consulting, Kim Dinwiddie, discusses why your organization should do a compensation analysis.
This transcript was created using an automated transcription service and may contain errors.
This is a way to analyze your organization’s current pay practices and determine if they’re competitive for your industry and geographic location. Compensation analysis is a vital component of an organization’s talent management strategy, as it helps attract and retain the best employees in the market. Evaluating pay equity allows organizations to compensate employees doing the same level of work in an appropriate manner. A compensation analysis also enables organizations to ensure it is being financially responsible in its operations.
In times of high numbers of resignations and strong competition, it’s often necessary to conduct analysis more frequently than the usual practice of once a year or once every few years. Organizations want employees to feel valued, appreciated, and taken care of. This is essential to keeping them engaged in their jobs. The compensation analysis is a great tool and resource to get there.