S2/Ep8: Compensation Metrics Made Easy

This discussion is based on the article “Compensation Metrics Made Easy” by David Weaver, a compensation expert, who outlines the importance of tracking and measuring compensation metrics to improve business performance. The talk provides ten key metrics that every compensation program should monitor, including market index, compa-ratio, market ratio, salary range penetration, average compensation per employee, compensation revenue factor, compensation expense factor, bonus pay percent, percent over range, and promotional index. These metrics offer insights into employee compensation relative to market rates, salary ranges, and overall business performance. Weaver emphasizes the importance of actively managing compensation as a key business expense, suggesting that neglecting it can lead to missed opportunities and financial inefficiencies.