Strategic Architecture

A strategic architecture encompasses the total reward system within an organization, including base compensation, benefits, short- and long-term incentives, employee stock savings plans and other components.

Strategic compensation aligns the compensation system of an organization to performance and competencies. This dual approach ensures that employees are aware of their total reward potential, along with the possible career paths open to them within the organization.

Why is it important?

Organizations that choose to create strategic compensation systems are choosing to:

• Deal with all employees the same way

• Provide a way to rank employees according to their contributions

• Support the organizational growth strategy

• Simplify compensation decisions

How does an organization create a Strategic Compensation System?

Your organization can develop a strategic compensation system by:

• Determining a corporate compensation philosophy

• Identifying job bands and families

• Establishing corporate and position competencies

• Undertaking salary surveys

• Writing a compensation handbook

• Training managers and employees

• Communicating all of the above, and more!