Compensation planning in a slowing economy

The right data and tools help HR make informed, credible decisions
By Vivian Dell'Agnese
|Canadian HR Reporter|Last Updated: 11/13/2001

The current economic environment is fuelling many challenges and difficult decisions for human resource professionals. From a compensation perspective, tough economic times mean the coffers may be light or even empty when the time comes to grant pay increases and bonuses for 2001 performance.

Tough messages on the compensation front are just part of the challenge for organizations grappling with declining market conditions. Other challenges include trying to maintain focus on business priorities while implementing major change initiatives such as restructuring, workforce reductions or hiring freezes. As organizations facing these types of changes can attest, maintaining employee morale and retaining top performers become especially difficult.

The right data and tools, however, can help human resource professionals make informed decisions when dealing with the implications of tough economic cycles, so they can focus their efforts and develop credible responses.