Competitive and fair compensation for work completed is critical for attracting and retaining talent. Transparency around compensation practices helps to control management behavior, set employee expectations, and build trust at all levels of the organization.
Use this Compensation Philosophy Template (also known as a Pay Philosophy) to document your organization’s governing principles for compensation programs and activities.Recommended categories include:
- Purpose
- Objective
- Basis of job value
- Competitive intent
- Current compensation structure
- Focus of variable compensation
- Raises and promotions
- Authority and responsibility