In the past few months and as January has arrived, employers are finalizing their compensation plans for 2011. Salary freezes are thawing, merit increase budgets are being set, as companies look ahead to economic uncertainty. What is certain is the need to review your current pay and how your compensation plans compare with current market data. Use the best salary survey data available to you (hint: they are NOT free!).
Know who your top performers are and make sure they are recognized and rewarded for that strong performance. If you have incentive plans or performance bonus plans, review how they performed in 2010 to target, and if they need to be revised to address the company’s goals and strategic initiatives for 2011. Good compensation plans help ensure you will keep your best employees. They are (or will be) getting calls from many companies who are now hiring selectively and go after top talent. You’ll need your best employees to make 2011 be your best year yet!
