Compensation now encompasses a wide variety of benefits as companies start focusing on a “total rewards” philosophy, says Rena Somersan, Director Compensation Advisory Services at Verisight Inc.
Rena Somersan, Director of Compensation Advisory Services at Verisight Inc., says that companies are trying to maintain morale within their ranks. One strategy for reassuring a resource strained workforce is to make work much more engaging, and you can do this by educating those in leadership positions and by helping each employee understand exactly what their employer is doing for them as part of their “total rewards package.”
Pay-for-performance or merit-pay is becoming increasingly popular as businesses try to make the most out of every compensation dollar, says Rena Somersan, Director Compensation Advisory Services at Verisight Incorporated. Organizations interested in implementing a merit pay system need to first define how pay-for-performance will function within their existing cultural framework, and then leaders can begin determining exactly what form this new compensation system will take — performance targets, bonus, or any variation thereof.