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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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Strengthening the Link between Compensation and Return on Investment

MEL STARK

Hay Group, Inc.

MARK ROYAL

Hay Group, Inc.

From an employer perspective, there will always be a need to link rewards with return on investment (ROI). This perspective comes from the recognition that an organization must appropriately use its rewards funds to drive behavior, help to engage and motivate employees, and ensure that it is doing all that is possible to attract and retain the necessary talent for business success. In this regard, let’s be clear that not all companies or all functions within any one company will require “only the very best talent.” Some simply cannot afford it as a cost of doing business, whereas others will approach their people strategy ...

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