Creating a successful compensation plan requires the full understanding and commitment of senior leaders. Compensation impacts every employee’s livelihood, sense of value within the company, and overall engagement. It is too important to be handled in isolation by HR—this is why you need a Compensation Committee.
A Compensation Committee ensures that pay decisions are fair, competitive, and aligned with business goals. It brings together diverse leadership perspectives to shape the company’s levelling framework, compensation philosophy, and salary bands. This collective approach builds trust and transparency, making compensation a strategic priority rather than just an administrative task.
With a Compensation Committee in place, your company can maintain a structured, consistent, and evolving approach to pay that supports both employees and business growth.
This is a business tool, not just an HR tool. If it's going to be used by the team, it needs to be built by the team.
<aside> 👉 The term ‘compensation committee’ might sound a bit stuffy, so feel free to call it something else. Here are some examples that I’ve seen other organisations use: