Total Compensation Strategy

1105 Words Aug 10th, 2010 5 Pages
Total Compensation Strategy

Total Compensation Strategy

Managing Diversity

Nationally and internationally, companies are facing the task of reassessing the balance between their own identity and the force of integration. Centralism often makes access to new markets and regions difficult. Distinctive local autonomies, on the other hand, endanger the overall organization and identity of the company. Connected with this is the question of whether a unified and global compensation policy should exist, and how much room for maneuver local and regional entities and organizations should be given.

In heterogeneous corporate and company structures, in particular, there are no unified compensation strategies and structures. Systematic
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Analysis of the framework conditions

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» Which specific advantages are offered by corporation-wide standards vs. individual structuring possibilities?

» Are specific regulation requirements in existence? » Which framework conditions are needed for structuring using existing regulations?

Specification of principles and guidelines

» Defining management and operative levels » Taking into account international consistency » Establishing the compensation structure » Taking into account value-orientation » System for the agreement of objectives and performance evaluation » Defining salary bands » Establishing demands according to global principles » Reflecting on the advantages and disadvantages of different points of view » Defining useful and necessary parities » Solution suggestions for the harmonization of the structures » Developing transfer scenarios

Systematization and harmonization

Formulation and adoption of a total compensation strategy

» Transfer to global principles » Defining roles and responsibilities » Defining corporation-wide policies and principles » Defining regional/local policies and principles » Developing transfer scenarios »