When it comes to compensation, it’s good to have a plan – ideally, before you need it.
A philosophy that explains why your organization pays the way it does can guide you as you write compensation policies. It can also help you ensure alignment with equal pay laws and with your company’s vision and values around pay equity.
Formalizing your compensation philosophy and policies gives your HR team and managers guidance when they post jobs, make offers, negotiate with candidates and give promotions.
Pay policies based on a written philosophy can also streamline budgeting for salaries, bonuses