Compensation ROI can be measured in many ways. These include costs or savings associated with turnover, replacement costs, recruitment and retention, and employee engagement and productivity. Ways to measure your compensation programs include the following:
- Labor Market Rate Analysis
- Pay Strategy Review
- Internal Equity Analysis
These can provide essential information for managing costs and putting compensation ROI in perspective. Thus, they should be conducted periodically to keep your organization on track and enhance your competitive position in the marketplace.
Ultimately, a company’s compensation strategy should support and help drive the success of the go to market strategy and the business plan.