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Saturday, January 23, 2021

A well-articulated compensation philosophy aligns pay

 January 23, 2021     No comments   

 Instructions:

A well-articulated compensation philosophy aligns pay and other rewards with business strategy. As such, the philosophy statement will reflect unique strategy, culture and values. Investigate the compensation philosophy statements of an organization and evaluate the philosophy statement based on the following characteristics:


What is the single, underlying philosophy that is articulated within the document? Summarize in one sentence.

What is the philosophy’s potential for variability? In other words, can the philosophy be applied to both exempt and non-exempt employees? Explain fully.

Does the philosophy statement consider similar markets or business industries? How do you know? How is this reflected within the philosophy statement?

What market strategy is reflected within the statement? (Refer to Chapter Two of Text)

What references/links are made to employee performance?

What information is provided about communication/openness? If none is provided, why do you think this information was not included?

What are the goals of the compensation plan?

How is compensation defined?

What is the targeted competitive position in the market?

What role does performance play?

What will be the mix of compensation?

In your opinion, what does the compensation philosophy communicate to employees or potential employees?

Conclude your evaluation by rating the compensation philosophy on the basis of it being realistic, equitable, and transparent.

The last page of the assignment should be a reference page in APA format. This assignment should contain a minimum of 500 words.


Assignment Resource(s):

Please choose a compensation philosophy to evaluate from the list below:


Partnerships BC. (2009, November). Compensation Guidelines (Links to an external site.). [PDF]

Bank of America. (2018). Our people: Recognizing & rewarding performance (Links to an external site.). [Website]

Aflac. (2018). Notice of 2018 Annual Meeting of Shareholders and Proxy Statement (Links to an external site.). [PDF]

McDonalds. (2013). 2013 McDonalds proxy statement - LQ (Links to an external site.). [PDF]


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