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Hi Ann,

This is a great summary of a complex process. I would only add, at the very beginning, that having an understanding of "who" the company is and how they want to be viewed by current and potential employees is often a critical step.

Regarding Reward Elements and Their Purpose: I fine it sometimes helps to discus this portfolio in the same way a financial advisors discuses the personal portfolios of the executives. Again, short and long-term objectives are critical, as are an understanding of how an why each potential compensation instrument works.

Great additions and suggestions - thanks Dan!

Compensation Audit Category Area
1. Competitiveness
2. Pay for Performance
3. Internal Equity
4. Government Compliance
5. Cost Control
6. Communications
7. Turnover
8. Cost Effectiveness
9. Concern for Employees
10. Administrative Ease

Each category is followed by three choices to be made re PERCEIVED OBJECTIVE OR POLICY, Relative Importance and ACTUAL PRACTICE.

Here is an example of the column section choices for Competitiveness:
(check one per category)

Overall, we intend to pay our employees...
1. low, just enough to attract/retain
2. generally competitive rates
3. high, much more than most

Relative Importance
1. low
2. medium
3. vital

Overall, we pay our people...
1. low, just enough to attract/retain
2. generally competitive rates
3. high, much more than most

Part of the instructions read:

Your anonymous answers to this questionnaire will help us determine the compensation philosophy of your organization, how the actual practices meet those goals and objectives, and what is needed to close any gaps while maintaining programs that are already working well. All comments you make will be confidential. Your statements will be summarized with those of other participants in a formal report. No information on “who said what” will be included, nor will any comments be quoted in a way that could identify the respondent. Once the formal report has been written, any worksheets identifying individual responses will be destroyed.

If the range of suggested answers do not adequately describe your opinion or understanding, feel free to add your comments on this form or on an attachment, referencing the category name or number covered in your additional response. This is not a test, so there is no “right” answer. We want your opinion, your best guess or your general understanding. Each time you encounter three choices, please select one.

Thanks for sharing your protocol here, Jim - helps flesh out content and process in more detail!

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