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Compensation Management

Provided by Buzgate.org Small Business Resource Referral Network, content partner for the SME Toolkit.

Paying your employees the right amount is challenging at best - too little and you lose your good employees - too much and you are unnecessarily increasing your costs. Access subscription-based, on-demand decision-ready Human Resource (HR) data and analytical tools that provide detailed compensation figures, job descriptions, best practices, trends, and policies designed specifically for serving small businesses.

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Why Manage Compensation

As a small business, controlling costs are key to success. At the same time the old adage, "you get what you pay for," also holds true.

Attracting and retaining skilled and talented employees cost money - yet, what is the right amount? Access to on-demand compensation data using Job Valuation Reports and robust HR analytical tools can ensure that you not only get what you pay for, but retain employee talent as well. Below are some of the benefits you may expect from utilizing a web-based provider of robust HR Compensation Data ideally suited for Small Business.
  • Match compensation to the unique job descriptions of employees
  • Establish fair and competitive pay practices based on company size, location, and industry
  • Avoid over or under spending on compensation relative to competitors
  • Negotiate with confidence when hiring new employees
  • Save time and money by utilizing web-based market data and easy-to-use analytical tools instead of manual or outsourced approaches

Small Business Compensation Tools

Leverage available and easy to use on-line, on-demand tools to obtain employee compensation, job description, benefits, performance review and best practices data. This knowledge will enable your small business to establish fair and competitive compensation practices to improve your ability for attracting and retaining needed talent. Select any one of the following features to learn more:

  • HR SalaryWizard® - Use free search tool to access job descriptions and basic salary report for over 2,000 jobs
  • Compensation Market Studies - Access decision-ready data for a range of related job categories to make informed recruiting choices and establish competitive compensation packages
  • SalaryWizard® Pro Tap unlimited job search tool to learn what other small businesses are paying for various jobs
  • Utilize Compensation Surveys to capture and manage data specific to your company's unique needs
  • Job Valuation Reports Secure a more complete picture of what a particular job pays, as well as related benefits, bonus and wage increase practices

Solution by Type of Need

Discover by type of specific need and number of employees, what HR Compensation Resources are available to you to improve your ability to attract and retain productive employees:

Small & Medium-Sized Business Solutions

"I need answers regarding all job categories today and into the future."
HR Manager of CFO

Free Trial demonstrates access and value to compensation and job profile data by location, industry and size of business

Personalized Salary Report provides access to 6,000+ job titles for 2,800 job descriptions and other pertinent data to assist with compensation decisions

"I need to provide each of my employees with specific job data."
Business Owner

Job Valuation Report provides comprehensive data per individual job or multiple jobs

"I need to be able to tell my superiors what my team is worth."
Dept. Manager or Supervisor

Job Valuation Report provides complete picture of benefits, bonuses and raises as well as pay for individual or multiple jobs

"I'm posting jobs and need to know what to offer."
Recruiting Manager

Job Valuation Report supports robust data access and job profiling for 10 or more positions at a savings

"My compensation reference library needs to be updated and expanded."
HR Manager or Analyst

Download Compensation Marketing Study to compile job title comparisons by base pay and total cash compensation as well as learn job descriptions, compensation variations and pay practices by size of business

Best Practices

Develop your understanding and knowledge of sound compensation practices by learning from industry experts. Select from any one of the following links to view complementary and informative white papers that can help you make better HR decisions:

Small Business Advantages

Convenient and affordable access to on-line, on-demand, decision-ready Human Resource (HR) data and analytical tools can provide valuable insights for small businesses. For example, learn how offering the following non-cash environmental incentives can mean the difference between a highly qualified individual choosing to work with you instead of a larger organization that may not be able to offer them:

  • Frequent contact with top management
  • A greater sense of personal involvement
  • Broader experience and better opportunities for on-the-job learning
  • A job more tailored to an individual's talents
  • Stock options in high-growth environments
  • Faster promotions

Full Benefits Picture

Do you know what you really pay employees? A further benefit for subscribing to an on-line, on-demand source of HR Compensation Data is that you can learn about additional ways to convey value to your employees. For example, below are categories of indirect compensation components that when provided to employees, may be assigned dollar values to convey total cash compensation paid to employees in addition to a base salary or hourly wage:

  • Social Security/FICA contributions
  • 401(k) or 403(b) match
  • Disability Insurance contribution
  • Healthcare Insurance contribution
  • Pension contribution
  • Time off; vacation, sick, personal days, etc.
  • Tuition reimbursement
  • Banking services
  • Purchase discounts

Incentives; When and Why

Subscribing to an on-line HR Compensation Solution Provider can also help your small businesses to learn about various incentive programs that will further motivate and retain talented employees. For example,

  • Short-term incentives allow employers to restrain base pay growth while providing rewards for good performance including:
    • Cash payments
    • Bonuses
    • Commissions
  • Long-term incentives reward employees for attaining objectives over the longer term, such as 2 to 5 years or as long as 10 years. Examples include:
    • Stock options
    • Phantom or restricted stock
    • Performance units or shares

Compensation Terminologies

Review common terms and acronyms used when communicating and negotiating compensation packages to ensure win/win outcomes between you and your employees.

10 Great Reasons for Managing Compensation with "On-Demand" Solutions

In addition to supporting improved productivity and HR decision-making without having to purchase additional software or hardware, below are additional reasons that make subscribing to an On-Demand HR Solution Provider cost-effective and productive:

  1. Pay only what you need to and get what you pay for
  2. Attract and retain talent with competitive compensation packages
  3. Negotiate terms of new hires with confidence based on real data
  4. Align compensation to specific job description
  5. Pay competitively based on company size, location and industry
  6. Make informed HR decisions with access to 6,000+ job titles for 2,800 job descriptions
  7. Pay for performance by aligning specific job skills to quantitative measures
  8. Take advantage of industry best practices
  9. Understand and utilize established short and long-term employee incentives to motivate and retain talent
  10. Expend less time and money and receive more accurate data with easy-to-use on-line, on-demand tools

Where to Begin

Choose any one of the following options to begin taking advantage of established knowledge and expertise in HR Compensation Management practices to attract, retain and reward a talented employee team:

  1. Register your business
  2. Try a Free Trial
  3. View Surveys on compensation, retention, medical coverage and other HR Compensation Policy and Practices
  4. Contact a Compensation Expert at 1-866-694-7911

About Your Sponsor

"Salary.com™ is the technology leader in providing employee compensation data, software, and services to enterprises, small businesses, and individuals. HR software solutions help companies manage their compensation expenditures with real-time, decision-ready data and analytical tools. The Salary.com™ website is one of the most widely recognized destinations for those seeking reliable information about employee pay levels and compensation-related best practices, trends, and policies."

Copyright (c) Knowledge Institute, Inc., 11 Court Street, Exeter, NH 03833, USA
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Michael Juarez  |  April 07, 2011
One thing I would have liked to have seen covered in greater detail would be benefits/drawbacks of the different comp plans. For example, commissions can be industry specific and salary can sometimes inhibit motivation.<br/><br/>Additionally, an array of tools are available to help all of your compensation needs. One thing which is commonly overlooked is the development of a commissions plan which doesn't properly utilize available tools. An example would be a compensation plan which includes commissions but then doesn't involve a proper commissions reporting tool. An example of a tool can be found at http://www.oneclickcommissions.com/sme.html<br/><br/>All in all, great article. Thanks!