Radford Compensation 101

Course Introduction

Welcome to class!

 
Why did we write
this guide?

Although usually regarded simply as "how much we are paying an employee," compensation is actually much more complicated than most people (even those working in HR) seem to realize. This guide was written to cover everything from the basics of compensation such as “how to pay” and "how much to pay" to more advanced topics including "incentive plans" and "job leveling" (coming at a later date).

Who will benefit most
from this guide?

If you're a comp analyst, HR manager, people operations, or anyone working in your company's department that handles compensation, then this guide is for you. If you're someone that finds compensation interesting and just want to learn more about the topic, then you'll find this guide informative as well. Everyone from newbie compensation analysts to HR veterans will be able to find something of use to them.

What makes this
guide different?

There are already plenty of well-written guides and articles related to compensation that you can find on the internet. However, few of them can give you the technology and life sciences industry relatability that only Radford is able to offer. In addition, we tie up all of our chapters to a real life data sample from our Radford surveys so you can identify how to apply survey data directly to some common and not so common compensation issues.

Course Topics

Chapter 1: How to Pay, Understanding the Players and the Game

Before we can get into the question of "how much" we should be paying, we must first understand how pay works within the organization. This begins with HR people and compensation analysts needing to have a thorough understanding of their own role within the company itself. External factors such as the economic and legal environments will also influence compensation decisions.

Chapter 1

Chapter 2: How Much to Pay, Rewards Program Design

How much to pay is definitely a relative term. What is considered high pay at one company can be on the lower spectrum at another. The first part of understanding how much to pay is to know the philosophy and inner workings of how it’s established.

Chapter 2

Chapter 3: How Much to Pay, Market Benchmarking

How much you should pay someone is a relative term. Some companies can afford more than others based on their business model. Companies also balance a variety of reward opportunities based on their overall strategy. After all, pay is only one part of the employee value proposition. Knowing that a pool of resources exists, the next step is to determine exactly how much to pay.

Chapter 3

Chapter 4: How to Change Pay, Managing Rewards Programs

As employees learn new skills and their value to the organization grows over time, an increase in pay should be expected from both parties. This may sound simple; however, a pay raise isn’t just tacking on an arbitrary value to existing pay. With the labor market constantly in flux, companies that find themselves ready are the ones regularly updating their salary range midpoints.

Chapter 4

Chapter 5: Variable Incentives, Design Philosophy and Considerations

When making an offer to a prospective hire, base salary is only the beginning of a total rewards package. Variable incentives in the form of an enticing cash bonus or robust equity package will more often than not be the deciding factor and can likely sway the decision to accept vs. reject a job offer.

Chapter 5

Chapter 6: Variable Incentives, Cash Awards

You’ve heard the expression "Cash is King," and when it comes to short-term incentive rewards, it certainly rings true as most incentives take the form of a cash payment. It's not as simple as writing a check, however. Cash awards require careful plan design considerations, similar to any other rewards-based system. 

Chapter 6

General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.



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