The Best Evaluation Approaches of Executive Compensation Surveys Canada
Posted: May 22, 2018
Proper compensation of your executives is essential especially if you are seeking to keep your top talents in the organization. However, most investors usually find it hard to determine the best compensation rates for their executives. Bear in mind that you need to strike a balance in your selection since underpay can make you lose your employees while overpay on the other hand can eat into your profits and drastically increase your payroll budget.
While there are laws and regulations on the compensation of executives in different sectors, the need for executive compensation surveys Canada cannot be overlooked a bit.
Types of executive compensation
One way of looking at compensation is as an incentive to get your employees to give their all and improve their performance. Some of the executive compensation that you will need to consider when venturing into business includes:
? Cash – this is the most commonly known compensation – the total sum of cash salary that executives receive for the year.? Deferred compensation– as the name suggests, this compensation is put off for a while until a later date. The main reason why this arrangement may be considered is for tax purposes.? Retirement packages– executives will be more encouraged to continue working and produce their best when they know that their retirement is taken care of. That is why many employers provide generous retirement packages for their executives.? Executive benefits– this category takes care of all benefits that executives get and not included in the cash compensation. They include the use of a private jet for travels among others.
Evaluating Compensation Data Canada
So you have acquired the executive compensation data, what then? How do you use it to determine the best rates for your executives? Here are the things that you will need to consider when doing your evaluation:
The first thing to know is that the report is only supposed to work as a benchmark. The final salary scaling that you come up with will still depend on your operations and the level of your profits and production. It is advisable to ensure that you have considered everything before you choose the compensation rates.
An important piece of information that you will get in the executive compensation surveys Canada is the comparison between performance and pay. This is one of the most effective ways of ensuring that you are neither overpaying nor underpaying your executives.
If you have the compensation data for a company in your industry, then it is easy to know the range of compensation for your executives. This approach to evaluating executive compensation is commonly used by investors seeking to venture into an investment for the first time.
Coiri provides comprehensive yearly reporting services of benefits surveys, salary surveys, employee compensation surveys, and executive compensation surveys in Canada. Custom surveys, human resources legal advice by us.