How it works

Organizations allocate significant yearly funds to attract, develop, and retain talented, skilled, and diligent labor. Given the relevance of such an investment in people compared to other operating allocations across the organization, it is of the utmost importance to communicate every component of the compensation philosophy and how each impacts the organization’s overall business strategy.

looks_oneHighlight compensation as an organizational investment

As part of their scope, finance practitioners will always identify the return on investment (ROI) of business initiatives to evaluate their expected performance and compare it to other available opportunities for the organization. Should a business initiative generate low early returns to the organization, it would reduce its likelihood of becoming part of the business plan and being postponed (or even discarded) for future years.