What is Compensation
Three elements make up compensation: direct pay, such as wages and salaries, indirect
compensation, like benefits, and nonfinancial compensation, such as flexible work schedules and
incentive programs (Belcourt et al., 2019). Companies need to manage compensation plans that
will draw in, keep, and grow the greatest people. Strategic compensation can be used to
accomplish this. While keeping business goals, culture, and philosophies in mind, strategic
compensation incorporates elements to encourage and grow personnel (Belcourt et al., 2019).
Compensation Plan at the City of Edmonton
A salary grid system with six tiers of compensation was implemented as part of the City
of Edmonton's compensation strategy. In the past, the City required workers to individually
discuss annual raises with their team leaders or supervisors. This strategy was uneven and
prejudiced. As a result of this behavior, many women and minorities felt undervalued and
frightened. The grid approach enables the City to classify staff members according to their
abilities, duties, and competencies (Belcourt et al., 2019). Depending on a suggestion from their
yearly performance review with their immediate supervisor, employees are promoted through the
band every year.
The City also provided employees with Flextime, a non-financial compensation element,
along with broadband during the 2017 launch. Employee-provided work hours in a non-
traditional work schedule are referred to as flextime. Different outside circumstances may have
an impact on each employee's daily activities and work schedule. Flextime-enabled companies
