“We need to articulate our overall compensation philosophy and design pay programs that work for the organization vis-à-vis that philosophy”

• Lack of governing compensation philosophy to provide a framework for evaluating existing pay programs and practices

• Many existing compensation programs have resulted in a sense of entitlement among the work force

• Lack of a clear external market perspective on the economic value for most jobs

• Employee tenure impacts pay differentiation more than does performance

• Desire to create a culture of performance and recognition

• Developed an overall company compensation philosophy with input from executives, management, and employees

• Evaluated all compensation programs relative to that compensation philosophy

• Market-priced jobs from nearly every function in the organization

• Developed a new base salary structure on the basis of the market-pricing effort

• Designed and implemented pay management tools to reinforce a performance culture and avoid a sense of entitlement