Compensation: A Practitioner’s Approach
is written from the practitioner’s viewpoint, not from a purely academic viewpoint. Our focus is primarily on the practices and applications. Thus, our intent is to provide a roadmap for compensation professionals, guiding them in developing and managing compensation programs for organizations. There are many “how to” illustrations throughout the book that provide guidance for compensation analysts and HR managers. After all, the compensation an organization offers its workforce includes much more than just cash in one’s paycheck. Strategic planning with well-defined approaches, models, and analytics have become essential to the compensation professional.
Most compensation functions developed over the past fifty years have focused on the pay and benefits components of compensation, with many other components merely treated as afterthoughts. However, the core of compensation goes well beyond pay and benefits and have existed for many years in most organizations. We just called them by other names. For example, training and development has been essential for the benefit of both the individual and the organization. Performance appraisal is essential for making sure the leaders and the workforce are correctly performing the required tasks. Recognition is essential for motivating people to correctly and enthusiastically perform their work. Promotion into the next level position within the hierarchy of jobs requires skills, abilities, and understanding on the part of the human resources department. As we moved into the twenty-first century, the WorldatWork Professional Association began to recognize the role of a compensation professional as more than just compensation and benefits, but now includes individual work life as well. A Total Rewards Program, as described on WorldatWork’s website, describes the T-1 Certification course as follows:
Learn what is required to formulate a rewards program that has the power to attract, motivate and retain—total rewards. Participants are introduced to the total rewards model and each of its components. Emphasis is given to the five elements of total rewards: compensation, benefits, work-life, performance and recognition, and development and career opportunities.
● Gain an understanding of total rewards management.
● Discover the five elements of total rewards.
● Understand the critical role of the main drivers—organizational culture, business strategy, and human resources strategy.
● Learn the process of designing a successful total rewards strategy.