Why Compensation Is Critical
Human capital is a business’s most important asset. Most of the time it also is the largest operating expense, and thus can have a major impact on profitability and overall success. To keep employees engaged and productive, companies must of course compensate them appropriately – while not overpaying them and running the risk of eroding the bottom line.
Maintaining this balance is not easy, and our benchmark research finds that most organizations’ confidence in their compensation processes is shaky. More said they are only somewhat confident or not confident (54%) in those processes than are confident or very confident (46%) in them.