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Compensation Review
A compensation review is a critical process undertaken by organizations to ensure that their salary structures and benefits packages remain competitive, fair, and aligned with their strategic objectives. This process involves a thorough analysis of various factors including market trends, internal equity, employee performance, and organizational budget constraints.
What is a compensation review?
A compensation review is a structured evaluation of an employee’s salary, incentives, and benefits to ensure fairness, competitiveness, and alignment with performance. For sales teams, it often includes base pay, commissions, bonuses, and performance-based incentives.
What is the purpose of a compensation review?
The purpose of a compensation review is to evaluate employee pay and benefits to ensure they are fair, competitive, and aligned with performance and market trends. It helps sales organizations reward top performers, address pay gaps, stay competitive in the market, manage budgets, and ensure compliance with labor laws. This process supports retention, motivation, and strategic compensation decisions.
Should performance reviews be tied to compensation?
Yes, especially in sales roles. Linking performance reviews to compensation ensures high performers are recognized and rewarded, which motivates continued results and supports a fair and transparent compensation review.
Why is a compensation review important?
For sales leaders, a well-executed compensation review process directly impacts motivation, retention, and revenue performance. It ensures top performers are rewarded appropriately and helps prevent attrition by keeping pay competitive within the market.
When should a compensation review be conducted?
Most companies conduct compensation reviews annually, but high-growth or sales-driven organizations may review quarterly or bi-annually. Timing should align with performance review cycles and business planning to ensure budget alignment and timely adjustments.
How does the compensation review process work?
The compensation review process typically starts with performance assessments, market benchmarking, and budget analysis. For sales teams, this involves reviewing quotas, commission structures, and individual performance. Tools like compensation management software help automate and streamline this process for accuracy and scalability.
Survei denyut nadi karyawan:
Ini adalah survei singkat yang dapat dikirim secara berkala untuk mengetahui pendapat karyawan Anda tentang suatu masalah dengan cepat. Survei ini terdiri dari lebih sedikit pertanyaan (tidak lebih dari 10) untuk mendapatkan informasi dengan cepat. Survei ini dapat diberikan secara berkala (bulanan/mingguan/triwulanan).
Pertemuan empat mata:
Mengadakan pertemuan berkala selama satu jam untuk mengobrol secara informal dengan setiap anggota tim adalah cara terbaik untuk mengetahui apa yang sebenarnya terjadi dengan mereka. Karena ini adalah percakapan yang aman dan pribadi, ini membantu Anda mendapatkan detail yang lebih baik tentang suatu masalah.
eNPS:
eNPS (skor Net Promoter karyawan) adalah salah satu cara yang paling sederhana namun efektif untuk menilai pendapat karyawan tentang perusahaan Anda. Ini mencakup satu pertanyaan menarik yang mengukur loyalitas. Contoh pertanyaan eNPS antara lain: Seberapa besar kemungkinan Anda akan merekomendasikan perusahaan kami kepada orang lain? Karyawan menjawab survei eNPS dengan skala 1-10, di mana 10 menunjukkan bahwa mereka 'sangat mungkin' merekomendasikan perusahaan dan 1 menunjukkan bahwa mereka 'sangat tidak mungkin' merekomendasikannya.
Berdasarkan jawaban yang diberikan, karyawan dapat ditempatkan dalam tiga kategori yang berbeda:
- Promotor
Karyawan yang memberikan tanggapan positif atau setuju. - Pengkritik
Karyawan yang bereaksi negatif atau tidak setuju. - Pasif
Karyawan yang bersikap netral dalam memberikan tanggapan.
How to ask for a compensation review?
Sales professionals can request a compensation review by presenting a clear case backed by performance data, quota attainment, and recent wins. It's best to time the request during annual reviews or after consistent overperformance.
How to prepare for a compensation review?
Gather your sales metrics—quota achievement, closed deals, pipeline growth, and any recognitions. Benchmark your role against market standards and be ready to show how your contributions have driven revenue. Preparation makes the compensation review process more data-driven and effective.
