Compensation Planning as Big as King Kong

King Kong had the highest salary on Parade magazine’s annual What People Earn salary survey. This fictitious character earned $759 million dollars for Universal Pictures. Even more amazing, John Lennon, who died more than 25 years ago, earned $22 million. King Kong and John Lennon are the exception to the average employee and organization. In fact, their incomes are closer to a large organization's total payroll. How do organizations of all sizes plan for salaries and growth?

With the assistance of a comprehensive HR system, compensation planning can be a manageable and successful undertaking. An effective system will help align compensation planning with corporate goals and strategies. It manages and analyzes total compensation, from base pay to non-cash compensation, such as benefits or paid time off.

Compensating employees competitively helps to attract and retain a solid workforce. Timely information is the key to measuring internal compensation levels against other companies in your demographic profile and against individual performance and goals. All these factors give you the information you need to develop and update a competitive plan.

When using technology to analyze and design a compensation plan, it is essential that all levels and types of employees are rewarded adequately. It is easy for an organization to notice their “King Kongs,” those people generating revenue and those people reducing expenditures through creative solutions. However, the “costume designers,” those people behind the scenes who make it possible for the “King Kongs” to be successful, also need to be recognized and rewarded appropriately.

Spectrum, an HRIS industry leader, provides a sophisticated compensation planning tool with iVantage ^®. It provides HR professionals with the tools to organize, plan and analyze their companies’ largest budgetary item—the cost of compensation and benefits.

To learn more about iVantage and compensation planning, please call Spectrum at 800.477.3287 or visit www.spectrumhr.com.