You will be choosing an organization you are familiar with and describing its compensation strategy.
This week we will focus on mapping compensation strategies. It should be pointed out that strategic maps provide a visual reference useful in creating a compensation strategy that is focused and clearly understood by employees and managers. Using your job or responsibilities as a homemaker, stay-at-home mom or dad, or caregiver, utilize the concept of strategic mapping to provide a picture of your company’s compensation strategy using the following 5 decisions contained in the pay model; objectives, alignment, competitiveness, contributions, & management (Exhibits 1.5 & 2.1):
Prominence: how important is total compensation in the overall HR strategy? Is it a catalyst, playing a leading role? Or is it less important, playing a more supporting role compared to other HR programs. An example is Microsoft where compensation is highly prominent vs. Bristol-Myers Squibb where it is more supportive.
Describe in terms of flexibility, degree of internal hierarchy, and how well compensation supports career growth. Example: Microsoft and BMS both use pay to support flexible work design and promotions. But in internal hierarchy, Microsoft is individual-oriented compared to BMS focus on teams.
Describe as total pay relative to what competitors offer (how much?) and the importance of incentives relative to base pay (what forms?). The importance of work/life balance achieved via benefits and services should also be included.
Focus on the basis of pay increases — individual and/or team performance — and the mix of pay forms (base pay, incentives, merit, bonus, stock options).
Describe in terms of ownership (non-HR managers’ role in managing pay), transparency (openness and communication about pay), technology (software support to administer pay), and the degree of employee choices and customization.