How should a CEO determine the compensation value of a new hire? It seems most companies defer the compensation to an HR compensation grid. This means that a highly qualified individual that has consistently saved a company $1M per year through several years of his/her career, may not be hired because he/she may be asking for $10,000 $25,000 more total compensation in salary, signing bonus, and relocation. It is bad business for a CEO or other C-Level hiring managers to scrutinize a business proposal more than they scrutinize the new hire compensation process for critical hires. Its time to blow up the compensation grids, hire proven winners and pay them according to their ROI track record!
I would love to be a CEO when a long term employee asks me why the new hire in the cubicle next to them was being paid $25,000 more for the same work. I would merely open the books, show them the career savings track record of their cubicle mate, then suggest this meeting never occur until they can bring in the same results.Share