There are plenty of articles that will tell you how to figure out if you’re being paid enough—scan the job boards, talk to a recruiter, check an online salary calculator, talk to colleagues. But pay ranges can vary a lot, and there are many variables. Plus, maybe you like your job and don’t want to move, but you want to know if you’re being treated fairly within the company.
In a large corporation, it can be a challenge even for HR to figure out whether you are being paid fairly or not. Did your manager hand out raises and bonuses based on merit or favoritism? Is there unconscious bias working against you because of your gender, race, religion, or other factors? Do you understand clearly how your variable compensation was calculated?
Here are signs to look for to know whether your company is managing compensation effectively.
Process and timeliness
For one thing, do your performance reviews and pay increases happen on time? Is there a regular process that takes place according to a set schedule, and is that schedule followed? If you are eligible for variable compensation, did you receive and sign off on a variable compensation plan that makes it possible for you to track your own performance against the plan? If you answered “no” to any of these questions, there may be some transparency issues that are preventing you from understanding your compensation structure (and whether you’re being paid fairly).
Visibility and data availability
Do you have access to on-demand Total Compensation or Total Rewards statements that clearly show how all of your compensation was calculated? Do your statements link back to the related data—performance rating, attainment metrics for your bonus KPIs, promotions, etc.? And do the calculations accurately reflect your compensation plan? If you are in sales, do you receive timely and accurate commission statements? Are the commissions linked back to the transactions for which you are receiving credit? Many errors in calculations can occur when data is not being managed centrally – the more Excel spreadsheets involved, the more likely something is to go wrong. (See our free eGuide: “8 Signs Your Compensation System is Holding Your Business Back”.)
A company with a well-structured compensation strategy should have a framework in place, with job grades and salary bands. They will have benchmarked your salaries and rewards with other similar companies. At a minimum, the company should be transparent about the pay structure, so that you can know where you fall within the pay range for your position. Do you know where you fall within your company’s pay structure, and are you being compensated fairly for your job according to market standards?
Culture of fairness
If a company wants to pay its people fairly and without bias, both new recruits and existing employees should be made aware of that intention. If they are walking the talk, they will have the systems and technology in place to deliver on that promise. Without the right systems, a company cannot even know whether they are paying fairly, let alone guarantee it. Technology exists to identify pay equity gaps and eliminate manager bias in pay decisions. Is your company using it?
All of the above can be accomplished in a large company, but only with the right technology. A company that is serious about fair pay will implement the systems needed to ensure it. And why not? After all, fair pay is a competitive advantage in the quest to attract and retain talent, and also helps a company steer clear of legal and compliance issues due to unfair labor practices, not to mention motivating employees and engendering loyalty.
The right solution
Companies that want to make sure they are managing compensation effectively and paying fairly use beqom, the future of compensation management. The beqom Total Compensation solution manages all forms of compensation on one platform, to give complete visibility. If your company uses beqom, they have the tools to make sure your pay is:
- Benchmarked to the market for your industry and job
- Within the established pay ranges for your company
- Consistent with your qualifications and performance
- Determined without bias due to gender, race, etc.
- Calculated and approved efficiently, transparently, and in a timely fashion
- Communicated with on-demand detailed total rewards statements
Employees aren’t the only ones to benefit. Automated compensation management has many advantages for the company as well, helping to increase efficiency, attract and motivate talent, and yield significant return on investment. Here are some resources you can share with your HR team to start your company on the path to world class compensation management:
- The ROI of digital rewards transformation
- Assess your rewards management
- Evaluate your HCM system for compensation management
Better compensation management is the first step towards fair pay for all—and much more!