Question

List the identifying challenges that supervisors face with fair compensation.

Answer 1

The top challenges faced by the supervisors with respect to fair compensation are as follows:

1- Compensation bench-marking: Employers compare their compensation rates with respect to the available compensation rates published on the online survey sources, thus measuring their competitiveness in the market for a particular skill-set.

2- Fairness within the firm: The pay should be such that for a particular role, there shouldn't be discrimination in terms of color /sex /caste. Such disparities can lead to legal complications.

3- Stakeholder buy-in for C-suite compensation: The annual report published by publicly traded firms show a detailed compensation of the top C-suite employees. HR professionals often find it immensely challenging to strike a balance between shareholder's approval for these high salary bands, and the C-suite employee retention.

4- Training the mentors / bosses: One of the toughest challenge for a HR professional is to train the mentors/ assessors on how to rate the performance of their sub-ordinates. Often, the assessors are not clear on the metrics on which an employee needs to be rated, and they end up considering parameters that may be outside the KRA of the employee.

5- Grievance Addressing Committee: Its often a challenge in any organisation to set up a committee exclusively to oversee that a fair and equitable compensation policy is being followed. This can best be done through setting up of a Grievance Addressing Board. However, selecting members for this committee and the process of setting it up calls for an organisation level change, and hence this can be quite challenging.