To retain talent, organizations must ensure that their workforce’s compensation is comparable to that of their industry peers. As part of this effort, they should integrate compensation reviews with goal and performance reviews to ensure employees are paid their fair market value; otherwise the best talent will become a flight risk. Many organizations understand this; in our performance management for talent management benchmark research, two-thirds said they want to integrate compensation with the review process. But most companies have more to do; they need to establish a continuous process that compares all information on new hires, promotions and market events, at least as part of an annual performance review or preferably every quarter. They should not delay change until employee feedback or exit interviews indicate that being underpaid is a primary reason for people leaving.
Topics: Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Business Performance Management (BPM), Cloud Computing, Compensation, Financial Performance Management (FPM), Human Capital Management, Mercer, Metrics, Operational Performance Management (OPM), Performance Management, Social Media, Talent Management, Workforce Analytics, Workforce Performance Management (WPM)