How it works

Compensation practitioners can be compared to orchestra directors in as much as they: (i) convert strategy into action—as a director that coordinates a piece of music (compensation) in the context of an entire orchestra (Human Resources); (ii) deal with ambiguity—as a director who interprets each musical score (market data set) and transmits their characteristic stamp (compensation model); and (iii) provides differentiated awards—as a director that grants solos (incentives and recognition) to their best musicians (top performers).

looks_oneAnalyze the business strategy and define the market approach

Determining the type of compensation strategy to be deployed requires reviewing the organization’s short- and long-term business model, culture, and talent needs beforehand.