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Have you ever wondered how to effectively retain top talent in your organization? The answer often lies in one critical area—rewards. But how do you determine the right rewards to offer? This is where Enterprise Compensation Management (ECM) comes into play.
ECM is a cornerstone of human resource strategy, focused on designing and implementing compensation plans that not only attract but also motivate the brightest minds within your organization. It provides a structured and systematic approach to defining salary structures, including various compensation elements such as incentives, bonuses, and additional perks.
Studies indicate a direct correlation between compensation and employee retention. For instance, a Harvard University study found that a $1 per hour increase in pay among warehouse workers resulted in a 2.8% increase in retention, while a $1 per hour decrease led to a 28% increase in turnover rates
In this guide, we’ll dive deep into the fundamentals of compensation management, exploring how to align it with both employee expectations and organizational goals. Whether you’re curious about leveraging ECM in your company or seeking to optimize your current strategies, you’re in the right place.
ECM- A quick glimpse
Before diving deeper, let’s understand Enterprise Compensation Management (ECM) at a glance. ECM is a
