A compensation policy should spell out the principles, rules, and guidelines that drive remuneration practices at your organization. Transparency of compensation practices ensures alignment of employee expectations with corporate objectives and practices. In your organization’s compensation policy, include:
- The general principles and controls related to compensation.
- Information about pay bands.
- The procedure for determining compensation levels and how that procedure is reviewed.
- Details on extra compensation and allowances.
Create a compensation policy unique to the needs of your organization with this comprehensive template.