Trying to figure out where to begin for effective compensation planning is challenging. The end result of a good compensation plan is the alignment of the plan with the expectations of those who are going to use it. Before we can get to the end, however, we must understand, from the beginning, whom the plan intends to serve in order to design the plan to meet these expectations.
Who is in the target market?
Of course, part of analyzing the market will focus on the existing workforce within the organization. This provides us with a short-term view based on immediate workforce needs and expectations. However, the investment of time and resources used to build an effective organizational compensation strategy must look to the long-term goal for sustainable results.
Who in the target market will benefit from a long-term vision? We can find answers to this question through market surveys that shape and guide the path to the future.
A recent example of this type of market survey focuses on the value-based expectations of the millennial workforce.
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The data provided in this report is just that: data. The charts and graphs on their own provide the basis for analysis. Analysis comes from translating the data into meaningful information. In this case, the data is used as a base to build a compelling story that tells the tale of what the millennial worker expects from their future as a valued participant in the Canadian workforce. The results of this report should lead to a natural conclusion that the long-term vision for sound compensation planning must be based on the growing needs of the millennial workforce.
Data analysis and market surveys help anchor the development of compensation strategy at the beginning. It is up to the thoughtful compensation practitioner to use this information effectively in order to implement a sound compensation structure at the end.
Discussion Questions:
- Based on the survey data in the report, identify three effective elements of a compensation plan that will meet the needs of millennial workers.
- How can market surveys be used to provide short-term planning for compensation design?
- How would you use this report on the millennial workforce to shape the compensation plan in your current place of work?