In this special solo episode, recorded live at the HR Tennessee Conference, David takes a deep dive into the fundamentals of compensation planning. He demystifies the complex processes behind pay decisions, breaking down everything from base pay and bonuses to the strategic importance of pay philosophy, market analysis, and effective communication. Listen in for a masterclass on how to build a fair, transparent, and effective compensation strategy.
[0:00] Introduction
Welcome to this special presentation!
Today’s Topic: A Deep Dive into Compensation Planning
[0:26] What Are the Core Components of Compensation?
Breaking down the differences between base pay, bonuses, and incentives
Navigating complex pay elements like overtime, tips, and perquisites (“perks”)
[10:59] Building the Compensation Framework
The essential strategic steps from pay philosophy and job analysis to market analysis and implementation
Identifying the key players in the planning process, from executives and HR to managers and employees
[22:43] How Can You Truly Pay for Performance?
Why merit increases may no longer be an effective tool for driving performance in today's economy
Aligning variable pay and bonuses with individual, team, and company performance for maximum impact
[37:58] Compensation Planning in Action: Case Studies & Real-World Scenarios
How to craft a compelling narrative around pay decisions to make them a true investment in employees
Adapting compensation strategies for non-profits by focusing on mission-critical metrics
[49:30] Q&A and Closing
Thanks for listening!
Quick Quote
“Incentive plans only work if the manager and the employee have a conversation and there's communication about why this happened . . . No one likes wasting money, and that lack of a story is a waste of money.”
