Published June 2011

Is Your Compensation Program Avocado Green or Stainless Steel? How to Tell When It's Time for an Update

By Aria Glasgow

Longtime compensation programs tend to slip slowly into disfunctionality, evidenced by increasing maintenance costs and more workarounds. Elements of compensation program based on former priorities may be less effective – and even at odds with – the current environment.  Yet it can be challenging to determine at precisely what point formerly once-effective programs are no longer meeting your organizational, cultural and strategic needs.

This article suggests some key questions that can help in assessing the effectiveness of your current compensation programs and targeting where changes might be useful.