1. How to Develop a Total Compensation
Strategy
May 4, 2009
Presented By: Natasha Lomas

2. Agenda
 Define Compensation
 Define Strategy
 Strategic Choices
 Tailoring the Compensation System to Business
Strategy
 The Total Compensation System
 Compensation Elements
 Key Steps
 Rewards of Work
 Questions

3. What is Compensation?
 Design
 Diagnosis
 Re-enforce

4. What is Strategy?
 Strategy refers to the fundamental directions that an
organization chooses.

5. Strategic choices
Corporate objectives,
Business unit
strategic plans, visions
strategies
and values
HR Strategies
Strategic
Social, competitive,
compensation
and regulatory
decisions
environment
Compensation
systems
Competitive Employee attitudes
advantage and behaviors

7. Aligning Compensation Strategy
Assessment
Industry and Labor
Strategic Business &
Employee Inputs Market Practices
Operating Inputs
and Preferences and Trends
Compensation Philosophies and Objectives
Organization
Base Pay
Performance or Fringe Benefits Compensation
Design
Variable
Administration
Delivery Pay, Nonmoneta
ry & Other
Monetary
Rewards &
Recognition

8. Comment and
Strategy Flexibility
and Value
Management
Total
Compensation
System
Motivation and
Performance

9. Compensation Elements
Fringe Benefits
Mid/ Long-Term Incentives
Short Term Incentives
Base Salary

10. Key Steps
Assess Total
Compensation
Implications
Reassess Map a Total
Compensation Strategy
Implement Strategy

12. Questions