Applied Comparatio; A Tool for Fairness in Compensation Management

Abstract

Loath or like it, compensation is a sensitive management decision mandate in every organisation and often evokes a lot of tension and requires further insights to understand its link to other organizational outcomes such as employee engagement, happiness and performance. Compensation management  is multi dimensional and encompasses key variables such as equity, justice, competencies and performance management. This study compares the compensation approach for three global companies based in Ghana, Senegal and Kenya. The study proposes a framework for fair compensation and introduces the  concept of “applied comparatio” that brings “an art and a science” perspective to facilitate fair compensation decisions in any organisation. That art and science includes a coherent compensation philosophy,  solid quantitative and qualitative comparatio principles in design and practice to ensure fair processes and outcomes. It concludes that there is a relationship between compensation and employee engagement outcomes on performance, retention and satisfaction.