Overview of the webinar

The salary budget is its biggest expense to a company. To employees, it’s a reward system for their work performed in your company and for the skills they bring to the workplace. It’s also communicating to your employees what sort of work ethic, skills, and attitude are rewarded at your company. So, when a company determines how salary rewards administration is structured, including wage rates and for what and how employees will be rewarded, those decisions are critical. 

Most companies have a performance-based system and need to learn how to use what salary budgets it has for maximum effect on employee performance while still ensuring equity within internal and external components and avoiding compliance problems. 

Before you get started, keep in mind that adopting a competitive, performance-based pay philosophy requires some extra work. Because a merit matrix connects performance to market rate pay. To differentiate wages based upon the results of your employees, you need to know what you want people to do, be able to sort out how they are performing and, based on that, differentiate their pay. The merit-based, pay-for-performance matrix also serves as a guide for supervisors so that they suggest pay increases that are fair and support business objectives.