Adjusting compensation refers to the process of making changes to employee pay and benefits in response to changing market conditions, internal policies, or individual employee performance. This process typically involves evaluating compensation packages against industry benchmarks and market trends, identifying areas for improvement or adjustment, and communicating changes to affected employees. Effective management of adjusting compensation requires clear communication, transparency, and adherence to relevant laws and regulations governing compensation and benefits. Properly managing adjusting compensation can help to maintain a competitive and fair compensation structure, support employee retention and engagement, and support the long-term success of the business by ensuring that employees feel valued and fairly compensated for their contributions.
