HR Glossary

What is Compensation Philosophy?

An organization's guiding principles and documented rationale for how it determines employee pay levels, pay mix, and pay progression relative to the market and internal equity.

Why it matters in hiring

Compensation Philosophy comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with C

• Cohort-Based Learning
• Commission
• Commuter Benefits
• Compa-Ratio
• Compensation Review Cycle
• Compensation Structure
• Competency-Based Interview
• Competency Development

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