Compensation Planning
- Shannon Drohman, Compensation Works
How often should I review our company’s total rewards strategy? When should I review market pay data? How much lead time do I need for a benefits review? Should I update our ranges every year? We are often asked these questions and many others. All the questions boil down to the same thing: Is there a particular time each year when the elements of a total rewards program should be reviewed or updated? The short answer is: Yes. However the actual time for review depends upon your fiscal year, your benefit plan year, your retirement plan year, internal resources, and other factors.
To help you keep track of everything, we’ve developed a general guideline and calendar: Compensation Program Planning Guideline_Summer2012
Sample Compensation Program Planning Calendar_Summer2012
The calendar makes the following assumptions:
- Fiscal Year – January-December
- Budgets Due – October
- Benefit Plan Year – January-December
- Open Enrollment – November
- Retirement Plan Year – January-December
- Variable Pay Performance Period – January-December
- Pay change effective dates vary by company; not reflected in calendar