3 Common Compensation Management Challenges for Employers
One of the most challenging aspects of creating a fair and equitable workplace is properly managing compensation for all your employees. You want to ensure you compensate everyone equally based on their role within the business, but finding that delicate balance is where the difficulty lies. Here are three common compensation management challenges for employers to look out for.
External Factors
In a business world that is increasingly more competitive, companies vie for top talent. The best way to do this is to offer compensation that is worth a potential applicant’s time and effort while also being a better offer than your competitors. This can make it difficult to find a fair compensation plan for your company if you base it entirely on which individuals are most desirable.
To help solve this dilemma, you can find market surveys to gauge the proper pay for different positions or offer other benefits to make up the difference, such as vacation days, childcare facilities, health care benefits, and more. A little innovation goes a long way.
Internal Factors
Internal factors are another cause of employers' most common compensation management challenges. You need to ensure you’re staying compliant with the OFCCP while determining what pay rates are fair for different roles and positions. If every position paid the same, no one would aspire to move up in your organization or take on more demanding roles. To prevent a wage gap from forming, you can conduct a pay review and invest in OFCCP compensation analysis services.
Digitization
With the rapid technological advancements over the past few decades, many businesses struggle to stay up to date and still depend on physical files over digital ones. This leads to inefficiency because you can’t easily recall data, and keeping physical files organized is time-consuming. To stay on top of wage management, it is highly encouraged to digitize all your files so that you can keep a closer eye on the compensation your employees receive.
