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How to create a compensation plan Determine your compensation philosophy. Outline job architecture by defining roles and levels. Create guidelines for performance evaluations. Define direct compensation (salary, bonus, and equity) Add in benefits. Implement a pay equity process. Conduct post-hoc reviews. Compensation Plan: Compensation Planning & Examples - Carta carta.com ? blog ? compensation-plan carta.com ? blog ? compensation-plan
For example, the employer may offer health insurance, dental insurance, life insurance, short- and long-term disability insurance and vision insurance. Employee retirement plans, like 401(k) plans, are another common form of indirect compensation. Equity-based programs are another compensation offering.
The most common types of payment included in comp plans are hourly wages or salary, commission, and bonuses. The percentages and inclusion of each vary based on many factors such as business type, industry, budget, and goals. Sales Compensation Planning Management - Varicent varicent.com ? blog ? sales-compensation-pl... varicent.com ? blog ? sales-compensation-pl...