The Basic Components of a Compensation System

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Aug 022011
 

As a reflection of leadership’s strategy about how it values its employees, a well-established compensation system allows employers to optimize on employee engagement, productivity, financial resources, and organizational goals.

Consider the following components and how to apply them into your business today:

  • Organizational Goals. Make sure to pay employees for their individual performances as well as reward them for efforts which support the business goals of the company, department, and/or team.
  • Employee Communications. Realistically communicate the company’s compensation program. Ensure whatever the message conveys, it is done so in manner that is fair, competitive, appealing and respectable. If the market conveys a particular value and the employer offers below the market value, then employee dissatisfaction and turnover rates will likely increase.
  • Rewards and Recognitions. Ensure that project recognition is differentiated from individual recognition; in doing so, each employee’s value and relevance can be more easily identified.
  • Timely Acknowledgements. Pay attention to the timing of rewards since desired performance should be rewarded as quickly as possible.
  • Simple Measures. Keep performance measures as simple as possible, and limit the number of measures to track.

Taking care of employees with a well-designed and well-communicated compensation program will help in the long-term investment of your employees as the company’s strongest asset.

Source:  HR Support Center

Welcome to our Payroll Solutions Blog!

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Jul 152011
 

Time 4 Payroll is a Beaverton-based, payroll provider offering payroll-related services, timekeeping and workers comp products for small to medium-sized businesses.  Our services range from online self-serve to full-service payroll solutions; whatever you prefer.

Like you, we are business owners.  We understand the challenges and time demands of managing employees, keeping track of all the payroll-related deductions and taxes, not to mention paying and reporting the taxes and benefits — all of which add absolutely nothing to your business.  We work hard to try to make your life easier by taking care of these details for you so you can focus on moving your own business forward.

One of the frustrations we face is when we hear about our clients’ problems or needs after-the-fact; if only we had known about the situation before a problem arose, we would have been in a position to have saved the business owner a lot of grief.  Questions like, “Do I have workers comp insurance for my employees?”, or “I just hired my first employee – how do I make sure this relationships works well?”, or “I just got a Notice of Determination from the Employment Department because I didn’t have work for my employee for two weeks — is there something I can do about this?”, or “My employee just quit — what do I need to do now?”, or “Can I just pay my seasonal employee as a 1099?”, or “I told my employee not to work overtime and yet s/he worked more than 40 hours last week.  Do I need to pay the overtime?”……  We could go on and on.

Wouldn’t it be nice if we small business owners could share our experiences, advice and help each other out?  Being small business owners ourselves, and working with hundreds of small businesses in the Portland-metro area, we thought we would start this blog to do just that and hopefully save you from learning from the business school of hard-knocks — all in occasional bite-sized doses.

Until next time,

Nancy & Pablo