Compensation: Outline and Definitions

Compensation Plans

Develop a program outline.Designate an individual to oversee designing the compensation program. Develop a compensation philosophy.Conduct a job analysis of all positions.Evaluate jobs.Determine grades.Establish grade pricing and salary range. Determine an appropriate salary structure. Develop a salary administration policy. Obtain top executives' approval of the basic salary program. Communicate the final program to employees and managers. Monitor the program.