Compensation Administration

The Employers’ Association is committed to helping employers develop creative, realistic, and workable solutions that will allow them to manage more effectively by linking their compensation practices with the behavior and efficiency they expect employees to exhibit. TEA develops compensation programs that help to attract and retain exceptional talent by ensuring internal equity while establishing external competitiveness. An effective Compensation Administration Program should help to influence behavior by paying employees for performance (their ability to do assigned job responsibilities and demonstrate their core competencies) rather than paying them for how long they have worked or trying to individually “price” a specific job to market rates. A well-defined Compensation Administration program should reward performance when consistently applied throughout the organization and help to address performance issues by defining expectations and linking progression through a job family or pay range to performance. 

No “one size fits all” compensation administration program effectively manages and rewards employee performance. We have developed more than 700 Compensation Administration Programs for companies throughout the country and can help your organization identify a Compensation Philosophy, develop an internal structure driven by tasks performed (rather than titles assigned), create job families that provide internal growth based on objective criteria, recommend pay bands / grade levels that demonstrate internal equity AND external competitiveness, then communicate results to your employees that ultimately add to your bottom line by respecting your operational budget.
TEA can help you design and implement a Compensation Administration Program by:

  • Determining the best total rewards philosophy for your organization.
  • Reviewing your current compensation and benefits system to see how it compares to your labor market competition. If your system “is not broken,” we will not try to “fix it.”
  • Involving all employees in the process.
  • Strengthening employee/management communications through direct discussions that clarify and solidify assigned duties and responsibilities.
  • Establishing internal equity while developing a competitive total compensation structure and recommending strategies that recognize the contribution that each identified job makes in fulfilling the organization’s mission.
  • Ensuring external competitiveness through the utilization of appropriate benchmark compensation data to establish effective pay ranges.
  • Training individuals within the organization to administer and maintain a finished product (then remaining available for questions or annual updates to compensation structure).
Why Develop a Compensation Administration Program?

Organizations must develop a compensation structure that identifies and provides internal growth while ensuring external competitiveness within an ever-changing market. A program must be defensible (based on objective information), understandable (consistent in its communication and application) and based on facts (market benchmarks that consider benefits and healthcare offerings) and communicated to employees (rather than developing it as ONLY a budget tool). 

Compensation Administration Is a Process, NOT a Project

Our intent in Compensation Administration is to create an understandable process that establishes internal equity while recognizing external competitiveness to attract and retain the highest quality workforce possible. Seeking employee input and working with an Organization’s Management Team fulfills this intent as we deliver “turnkey” programs that are built upon a strong program, consistently maintained to reflect job changes, additions, eliminations and market fluctuations AND allows for the internal administration of a Compensation Plan. TEA can help – call Dave Smith at 616.698.1167 or contact us at [email protected] to learn more.