• Human Resources & Corporate Learning

Modern Compensation

Modern remuneration, transparent salary decisions and equal pay are now mandatory for companies that want to continue to attract employees in the future.

In principle, every company must find its own individual remuneration model and its own individual salary decision process – there is no perfect, standardised solution.

However, there are a few aspects that make up a modern remuneration model:

  • Transparent and standardised processes
  • Fair remuneration rules that are communicated transparently
  • Equal pay for equal roles/positions in the company
  • Free choice between different remuneration components, such as a company car, vouchers, gym membership, etc.

You can use the following questions to check whether your company fulfils the above requirements or where you still have some catching up to do:

  • Does your company offer the required transparency and fairness in remuneration?
  • How strict are you about equal pay or does remuneration depend heavily on the employee’s negotiating skills?
  • Do your employees participate sufficiently in the success and growth of the company?
  • Do you use variable remuneration systems to promote agility and cooperation between employees or departments, for example through team bonuses?
  • Are you able to attract high-performing applicants with the remuneration and salary development options you offer in order to ensure your competitiveness in the future?

It is also worth asking yourself what exactly you want to remunerate your employees for: Are you remunerating time, specific results or the contribution of your employees to your company goals? How should this contribution be measured and who will do the measuring?

  • What exactly should be remunerated?
  • Is it necessary to include company objectives?
  • How should the contribution of individual employees to the achievement of objectives be measured?
  • Who should carry out the assessment: the employer or the team members themselves?


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