All companies face some compensation challenges. This scorecard will help you assess the current state of compensation management in your organization.

On each topic below score your company on a scale from 1 (lowest score) to 5 (highest score). A score of 1 indicates that you should do this and don't, or that you do it poorly. A score of 5 indicates that you do this very well and have high confidence in your company's effectiveness. Or, choose another score from 1 to 5 that indicates where your company falls. If a statement does not apply to you (for example, you are a non-profit agency and don't have a stock plan) enter a score of 3.

Click here for a print version of the Compensation Scorecard

We have a well-thought-out compensation strategy that reflects our business realities and company culture.
We conduct a periodic, thorough market analysis, and we use the data effectively in developing our pay system.
We have a performance management system that ties compensation to employee contribution.
We are sure that our job classifications and compensation actions are legally compliant with federal and state laws.
Our compensation system enables us to hire and retain the employee talent we need.
Our stock program is appropriate for our company's size, stage of development, financial condition and culture.
We have a clear, focused, well-documented sales compensation plan that leads the sales staff to desired behaviors and outcomes.
Our (non-sales) incentive plans help motivate employees to achieve results that lead to company success.
Our managers understand how the company's compensation system works. They have the tools they need to manage pay issues.
Our managers consistently handle employee performance and compensation issues effectively.
We have the Human Resources staff and HR information system to support the organization effectively in compensation management.
On the whole, our employees believe that the company has a reasonable, equitable way of handling compensation.
Calculated Total:

How well did your company do?

If your score is 0 — 30
Your company has many challenges involving employee compensation. Efforts to attract, retain and motivate employees may be at risk because of compensation-related issues. It is important to identify the most critical areas and develop a plan to address them. Judy Thompson can assist you in evaluating where to start.