In order to fully evaluate the impact of compensation schemes it is necessary to undertake, where possible, a quantitative assessment of their impact and assign calculable values. The following provide some simple ideas on how compensation schemes can be assessed:

•  Employee variable pay - Provision e.g., 

% of total sales allocated to bonus or performance related reward or,
% of pre or post tax profits allocated to bonus or performance related reward or,
% of pay allocated to bonus or performance related reward. This measure can provide an input into strategic decisions regarding variable pay levels. 

• Employee pay - Bonus allocation e.g., 

% of eligible employees to which bonus is paid per period.
This provides a measure of the effectiveness of the bonus system design and an indicator of employee satisfaction/motivation

• Employee pay - Bonus level e.g.

Bonus paid, individual or average , or,
Bonus paid as a % of salary, individual or average.

• Employee pay - Incentives e.g., 

% of employees participating in incentive schemes,
This measure can provide an indication of level of the organisation's focus on employee satisfaction and motivation. 

• Employee - Remuneration and benefits benchmark e.g. 

Average salary paid vs. competition or industry and geographical norms or,
Benefits provided vs. competition or industry and geographical norms

• Employee pay - Skill level linked e.g., 

% of employees whose pay is linked to assessed skill levels.
This measure can provide an input to the analysis of employee satisfaction and can be linked to employee training and development programmes. Many organisations use skill level on which to base remuneration to help create a learning culture.

•  Employee pay - Performance linked e.g.,

% of employees whose pay is linked with assessed personal performance.
This measure can provide an input to the analysis of employee satisfaction and can be linked to employee training and development programmes.

•  Employee - Recognition e.g.,

% of employees recognised or
% of employees recognised by formal recognition systems or,
% of employees recognised by informal recognition systems or,
No. of recognition events held per period. This measure assesses how effective recognition systems are at recognising outstanding effort and achievements.

•  Employee satisfaction - Recognition programme(s) e.g.,

Quantified results from a survey of employees This measure assesses the effectiveness of recognition systems deployed within the organisation  

•  Business objectives - Alignment e.g.,

% of employees who understand how their roles or jobs contribute to business objectives.

•  Employee alignment e.g.,

% of employees that are given personal objectives that align with organisational goals.

•  Vision -  Employee belief e.g.,

% of employees who believe in the organisation's vision or,
% of employees who believe that their job or role contributes to the organisation's vision.

•  Strategy - Communication e.g.,

% employees with an understanding of how their actions relate to strategy implementation. This measure assesses how well employees understand their role in the context of overall company strategy

•  Strategy - Understanding e.g.,

% employees with an understanding of the organisation's targets and goals. This measure assesses how well employees understand their organisation's strategies 

•  Mission and Vision Congruence e.g.,

% of employees whose actions are consistent with the organisations mission or vision.

•  Employee - Skills audits, frequency of e.g.,

Number of skills audits undertaken in a given period Explanation : A measure of the effectiveness of the human resources management process. Audits of skills reflects changes in the capabilities of the organisation's employees

•  Employee - Tenure e.g.

Period of employment with organisation to date or,
Average period of employment with organisation or,
Average period of employment with organisation per level or type of role or,
Average period of employment with organisation per age group
This measure can provide input into analyses of areas such as employee or job satisfaction, effectiveness of HR policy, demographic trends, employee development or career path plans etc..

•  Employee - Retention e.g.,

Number of current employees employed 5 years previously as a % of total no. of employees employed 5 years ago, or
Number of current employees employed 1 year previously as a % of total no. of employees employed 1 year ago. The trend for this measure can be used an indicator of employee retention/loyalty.  

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