How often should comp plans change?

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Change in what ways?

Increase in wage ranges for salary bands? Should be adjusted every time a merit cycle is completed for the organization.


Change in Base Pay and Bonus mix? These are long term plans that should be reevaluated constantly, but changes considered once per 5-10 years. Rarely does changing these really have the impact people think.

Some prominent stakeholder clearly has a mandate in play to keep incentive pay low. Our ownership group has let it be known they want us to dilute bonuses over the next few years. Even going so far as to consider eliminating it for non-managerial roles. Which, honestly…few entry-level roles in organizations qualify for bonuses.

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