NFP Compensation Insights | July 2024
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Understanding Benchmarked and Slotted Roles
When conducting a compensation study, understanding the difference between benchmarked and slotted positions is critical. Benchmark roles help gauge external market competitiveness while slotted positions ensure internal equity and alignment within an organization’s pay structure. Striking the right balance between both is key to determine fair and competitive compensation plans. In our featured article, we explain the main differences and provide guidance on utilizing both positions to ensure an effective compensation strategy. We hope you find the information helpful in developing your compensation plan.
By Megan Nail and Abby Clegg
Organizations often conduct compensation studies to ensure they are paying their employees competitively while maintaining internal equity. Two essential terms that frequently come up in the context of these studies are “benchmark positions” and “slot positions.” These terms are integral to the process of determining fair, equitable, and competitive compensation packages for employees. In this guide, we will delve into the key differences between benchmark positions and slot positions in a compensation study.
Bring Your Compensation Strategy Up-to-Date
These are interesting times when it comes to compensation. The trends that have been driving changes to pay systems—and, in some cases, knocking pay levels out of alignment with historical trends and organizational budgets—show no signs of easing. Competition for talent? Check. Wage pressures? Check. More pay transparency laws? Check. Pay equity questions? Check. All these issues are jostling for attention among normal business priorities.
Could Constructive Communication Combat Compensation Challenges?
Pay transparency is now considered table stakes and an organizational best practice, according to Payscale’s 2024 Compensation Best Practices Report, with 60% of surveyed organizations publishing pay ranges in job ads (up from 45% last year). However, 50% of HR leaders surveyed for the report listed compensation as their biggest challenge…
NEWS & UPDATES
We’re Excited to Announce an Important Development in Our Service Offerings
As you may know, Aon’s acquisition of NFP closed on April 25, making NFP an independent and connected platform within Aon. NFP’s Compensation Consulting team has now partnered with Aon to provide executive compensation and corporate governance services.
This collaboration enhances our ability to offer you a broader range of expertise and solutions to meet your evolving needs. To learn more about our expanded capabilities in executive compensation and corporate governance, please visit our dedicated webpages below or reach out to Megan Nail.
Executive Compensation Consulting | Aon »
Corporate Governance and ESG | Aon »
As our services evolve, we’re adjusting our communication approach. Moving forward, this newsletter will shift to a quarterly publication schedule. We invite you to subscribe to our Corporate Benefits newsletter, which offers complementary information and resources.
Our team remains committed to delivering the highest quality service and we look forward to continuing to support your compensation and governance needs with our enhanced capabilities.
