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Compensation Management

Knowledge of and ability to design, implement and evaluate compensation programs, policies and processes within an organization.

Behavior Statements

Proficiency Level 1 - Basic understanding

Describes the key purposes (e.g. motivating employees) of compensation management.

Cites organizational examples of compensation management.

Documents government regulations and industry policies related to compensation.

Lists compensation programs (e.g. executive compensation) used throughout the organization.

Proficiency Level 2 - Working experience

Implements compensation packages for an organization's employees.

Assists in developing various compensation programs within an organization.

Coordinates compensation activities with HR and business staff.

Adheres to government and industry compensation regulations.

Conducts job analysis and salary survey activities within the department.

Proficiency Level 3 - Extensive experience

Determines if compensation management objectives are in line with overall business objectives.

Oversees the implementation of compensation programs within the organization.

Advises the management team on compensation issues, such as pay structure.

Evaluates the effectiveness and competitiveness of existing compensation programs.

Teaches others the implementation processes for different compensation programs, (e.g. executive compensation.)

Adjusts the organization's compensation polices based on market trends and industry policies.

Proficiency Level 4 - Subject matter depth and breadth

Leads in aligning compensation strategies with the organization's overall plans to develop and improve working processes.

Establishes organizational best practices for the compensations program design.

Develops standard processes for the compensation program that are suitable for the entire industry.

Predicts the market trends and industry directions of compensation management.

Champions the organizational adoption of new methodologies and technologies for compensation management.

Leads discussions on the key issues of industry compensation policies; makes recommendations accordingly.

Interview Questions

  • What kinds of compensation programs have you designed?
  • Describe the main industry and government regulations governing compensation.
  • What are common compensation issues that are raised by the organization's management team?
  • How did you improve the organization's compensation program implementation process?
  • What were the impacts of a compensation program you implemented on the business's overall performance?

Titles with Shared Competencies