5 pay questions you'd better be able to answer.

To see if your compensation system holds up the employer's end of the employment contract, ask yourself:

  1. Do you have a compensation policy? It should spell out a strategic framework for making decisions about starting pay, raises, variable compensation and related issues.

  2. How well do you explain benefits to employees? Do they understand that benefits comprise a significant portion of their total comp?

  3. Do employees have access to reliable information about pay practices? Take control of the office rumor mill by offering concrete information about how pay decisions are made.

  4. How much does pay depend on performance? Do employees understand what they have to do to earn a fatter paycheck? Is it within employees' control to achieve goals that pay off? Or are...

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