C8 Business Acumen for Compensation Professional Questions and Answers

Audit fees

Rent

Maintenance

Shipping

Implement the merit increase budget as is because the anticipated financial obligations have made it necessary

Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Compensation professionals should anticipate the level of the audience and tailor messages to their needs.

Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don’t understand a communication.

Compensation terms are well-known and easily understood by most stakeholders.

Ask them to review or provide feedback, especially on something you have done for them

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern

They are all reported on the balance sheet.

They are all sources of capital.

They all incur the same costs to the business.

Nothing. Each of these is a different financial metric.

Compensation budgets only because staffing cannot exceed the funds available

A combination of organizational goals and budget realities

The consensus of HR management and line management estimates

The opinions of senior leaders in the organization

Limiting spending to a fixed percentage of organizational revenue

Making choices about spending based on expectations of performance

Increasing profitability of the business annually to maximize shareholder/owner value

Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Procurement

Recruiting

Setting priorities

Plan administration