HR Jetpack Logo

Compensation Philosophy Statement

This is premium content

Register for HR Recertification Credit Subscription to gain access to this course.

Compensation 101

  • Format: Self-paced
  • Course Duration: 1 hr 8 mins
  • SHRM Professional Development Credits: 1.0
  • HRCI General Recertification Credits: 1.25
  • Certificate of Completion (after passing quiz)

Compensation plays a significant role in an organization's success. A compensation strategy must be designed well to attract and retain talent. As the single largest expense for most companies, it's imperative to develop the right pay structure and appropriate recognition methods. This course is for HR Generalists who need to learn basic compensation principles and their application to the business. During this course, you'll learn about developing a compensation strategy, methods for conducting a job analysis, developing job descriptions, and setting up base and variable pay structures. Compensation is one of those topics you must understand to not only drive the success of your business but also build essential skills for a successful career in HR.


SHRM:
HR Jetpack is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1.0 PDCs for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.

HRCI:
This activity, has been approved for 1.25 HR (General) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
The use of the HRCI seal confirms that this activity has met HR Certification Institute's® (HRCI®) criteria for recertification credit pre-approval.

Title: Compensation Philosophy Statement
Module: Strategic Compensation
Duration: 1:08

Many organizations develop a formal Compensation Philosophy Statement. A Compensation Philosophy Statement is defined as a statement that reflects an organization’s compensation strategy and that provides a framework for designing, administering, and communicating compensation programs in a consistent manner.

The general content includes:

A description of the organization’s total compensation package. For example fixed pay, variable pay, and benefits.

A description of the organization’s competitors for labor

A description of the organization’s market for pay comparison purposes

A balance between internal equity and external market

A philosophy with respect to pay mix

A description of an organization’s target market position with respect to base pay, variable pay, and benefits

The organization’s philosophy regarding relationship of performance to pay

And, guidelines for communicating an organization’s compensation programs

Instructor: Pamela Sande

Pamela Sande, CCP, is the Managing Principal of Pamela Sande & Associates, LLC. Pamela has over 25 years of human resources experience in both consulting and corporate roles, including as an HR executive and as a specialist in designing total rewards programs that drive organizational performance.

In her current role as Managing Principal, Pamela and...

Pamela's Full Bio

SHRM Recertification

HR Jetpack® is an official SHRM Education Partner recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP.

HRCI Recertification

HR Jetpack® is recognized by HRCI as an approved provider to offer credit hours towards aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification.

HR Training

HR Jetpack® provides online training and support to HR Professionals.

Contact us to find the most appropriate service for you. Our expert support will answer your questions and offer guidance.

The information provided on this site, and in all courses should be used as a guide. Always consult an attorney when making employment law decisions.

Be Informed

Sign up for important notifications like new courses, deals, etc.