Before Budgeting - Tips For Compensation Planning

As an HR or compensation professional, you're well aware that the definition of compensation planning is changing. With the global pandemic, economic challenges and related government assistance program, many questioned what, if anything might change in terms of planning and budgeting for 2021.

Now that most organizations have moved on, understanding that we're in a new reality for a while, they are turning toward re-invention of their business and looking toward the future. While salary increase budgets might look different this year, the planning and guidance needed for employees and managers will still need to be created. Sometimes, the hardest question of all is, "Where do I begin?" Organizing your inputs and understanding your desired outcomes are key to a successful planning process.

If you want your department to keep a prime seat at the strategic-planning table, you should approach each and every year's annual planning process as an opportunity to make highly informed pay management recommendations that your executives will truly value. After all, your company's payroll is undoubtedly one of its largest expenses. Your annual planning recommendations and guidance should seek to optimize the effectiveness of that significant portion of the company's resources.