Rethinking Strategic Compensation, 2nd Edition

In today’s corporate or business world, the competition for top talent is fiercer than ever. One of the primary fields of battle for top talent is the area of compensation. In order to compete and win in this area, companies must build and implement successful compensation strategies and reward systems.

Compensation for the employee is defined by WorldatWork as the total sum (both extrinsic and intrinsic) economic benefit received by the employee in return for services rendered to the employer. For the employer, compensation can be defined as the cost of providing those economic benefits to the employee. This book examines compensation from both the employee’s and the employer’s perspectives.

Employees discussed in this book come from a range of functions, including hourly manual labor, middle management and, increasingly, "knowledge workers." Because the knowledge worker group is growing the fastest, most of the discussion that does not focus on executives will focus on this increasingly important category.

Before exploring every nook and cranny of compensation, business leaders should first review corporate strategy and organizational design. Compensation is only a piece, although an important one, of the total organizational structure. Without a defined corporate strategy, compensation plans run a high risk of being unsuccessful. The direction and intent of the company should be unambiguous, focused and well communicated. Once the organizational design is aligned with the strategy, the acquisition of talented employees that fit organizational needs becomes essential. Compensation is one of the primary means of attracting the right people. Once hired, employees need to be rewarded for their performance and productivity. Again, a well-designed compensation plan can provide this direction and incentives in employees.

This book addresses all of these issues, and helps you, the HR professional, design and implement the best compensation structure for your company.

Written by Brent Longnecker, a leading authority on compensation trends, planning and strategy, Rethinking Strategic Compensation provides:

• Compensation plan designs for specific worker groups, including executive and key employees
• An analysis of 'knowledge workers' and how to compensate this important category
• A look at the different pieces of a compensation package and their specific roles
• Techniques for more effective compensation plan creation
• ...and more!