Would you agree that compensation management may be the most critical HR function? After all, it affects operating budgets, employee engagement, recruiting, retention, performance, and productivity.
Compensation can account for 20-50% of your total operating cost. From an employee engagement perspective, compensation touches every aspect of the employee life cycle. This means there are many benefits of defining a compensation strategy:
- Attracting high-quality candidates
- Improved retention rates
- Positive impact on business results