Self Assessment Checklist Compensation

How do your company’s compensation practices compare to those of our best practices experts? To find out, print the form below. Place a check next to each item that applies to your organization and calculate your score.

Compensation Strategy
______ The CEO/owner has a clearly defined compensation philosophy.
______ Compensation is directly linked to strategic goals and objectives.
______ Management strives to change the culture first and then reinforce it with compensation.
______ Compensation rewards only the behaviors that drive the desired results.
______ Management uses total compensation when communicating to employees and job applicants.
______ Management tracks and measures the return on invested payroll dollars.
______ Compensation ROI is effective.
(Self Scoring: 2 or less = serious problem area; 3 = area needs major improvement; 4 – 5 = area needs moderate improvement; 6 = area needs minimal improvement; 7 = system is world class in this area)

Compensation Plan Design
______ The compensation plan is aligned with customers, the company and employees.
______ The plan uses satisfiers and motivators appropriately.
______ Employees are involved in providing information for plan design.
______ The plan clearly defines performance and identifies objective, impartial measurement and tracking systems.
______ The plan avoids discretionary measures.
______ The plan builds in adequate resources to communicate and market the plan to employees.
______ The plan rewards and reinforces the right behaviors on a frequent and consistent basis.
(Self Scoring: 2 or less = serious problem area; 3 = area needs major improvement; 4 – 5 = area needs moderate improvement; 6 = area needs minimal improvement; 7 = system is world class in this area)

Implementation
______ There is a plan “champion” at the senior management level.
______ The plan pays for productivity, not time.
______ The plan encourages employee initiative and creativity.
______ The plan does not automatically increase fixed expenses.
______ The plan does not pay incentives unless profitability goals are reached.
______ Management constantly and regularly communicates the workings and benefits of the plan to employees.
______ Management tracks and measures performance and provides feedback and rewards on a timely basis.
(Self Scoring: 2 or less = serious problem area; 3 = area needs major improvement; 4 – 5 = area needs moderate improvement; 6 = area needs minimal improvement; 7 = system is world class in this area)

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