Friday, January 20, 2012

I just had a conversation with some of my esteemed Compensation colleagues about Compensation's role in making offers to recruits.  We discussed the challenges with ensuring offers made are competitive and internally equitable.  There are a couple of effective approaches to accomplishing this:
  1. Compensation approves all offers: This is probably the most reliable way to ensure appropriateness and equity of pay (and job level), but it can be taxing for the comp staff, especially during times of heavy recruiting.  And it can slow down the process, potentially frustrating the internal client.
  2. Recruiting and management (plus HR generalists) together make offers with guidance/direction: This method requires pretty thorough training and coordination between Recruiting and Compensation staff.  It streamlines the process, but the lower level of oversight may result in equity issues or pay misalignment if the recruiter lacks education on making competitive offers or appropriate comparator information (internal and external).  This is where a tool developed by Compensation and used by Recruiting with hiring managers can be very effective.
No issue that involves compliance has a solution without some resource investment, risk and/or pain.  It's important to fully discuss your strategy for ensuring equity and competitiveness of offers with all stakeholders (including leadership) and spell out the risks before determining your approach.

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