Common use of Compensation Policy Clause in Contracts

Compensation Policy. Each company shall define the compensation policy to be applied to its staff. The labour market organisations recommend that salaries be determined according to the qualifications required for the job and that the compensation policy aims to reward job performance and improvements in the company’s efficiency and profitability. Compensation policy shall be based entirely or in part on the following principles: • It is in line with the company’s business idea and supports its implementation • It supports the development of the company’s efficiency, profitability and competitiveness • It is tailored to the individual. It takes into account the demand of the individual’s job tasks and the responsibility involved as well as the person’s skills set and results on the job • It rewards for individual abilities and skills such as information management and project management skills, judgement, initiative, innovation and the ability to co-­­operate. • It encourages each individual to deepen and expand their professional skills • It supports attainment of the joint objectives set for the workplace as well as co-­­operation across functional and personnel group boundaries. • It is clear, geared to the long-­­term and consistent but can be changed flexibly when this is called for by the company’s operating environment or business idea. To function effectively, there must be a consensus on the principles underlying compensation policy, and the supervisor and salaried employee should discuss how job tasks are performed and the effects this has on salaries.

Compensation Policy. Each company shall define the compensation policy to be applied to its staff. The labour market organisations recommend that salaries be determined according to the qualifications required for the job and that the compensation policy aims to reward job performance and improvements in the company’s efficiency and profitability. Compensation policy shall be based entirely or in part on the following principles: •  It is in line with the company’s business idea and supports its implementation •  It supports the development of the company’s efficiency, profitability and competitiveness •  It is tailored to the individual. It takes into account the demand of the individual’s job tasks and the responsibility involved as well as the person’s skills set and results on the job •  It rewards for individual abilities and skills such as information management and project management skills, judgement, initiative, innovation and the ability to co-­­operate. •  It encourages each individual to deepen and expand their professional skills •  It supports attainment of the joint objectives set for the workplace as well as co-­­operation across functional and personnel group boundaries. •  It is clear, geared to the long-­­term and consistent but can be changed flexibly when this is called for by the company’s operating environment or business idea. To function effectively, there must be a consensus on the principles underlying compensation policy, and the supervisor and salaried employee should discuss how job tasks are performed and the effects this has on salaries.

Compensation Policy. Each company shall define the compensation policy to be applied to its staff. The labour market organisations recommend that salaries be determined according to the qualifications required for the job and that the compensation policy aims to reward job performance and improvements in the company’s efficiency and profitability. Compensation policy shall be based entirely or in part on the following principles: • It is in line with the company’s business idea and supports its implementation • It supports the development of the company’s efficiency, profitability and competitiveness • It is tailored to the individual. It takes into account the demand of the individual’s job tasks and the responsibility involved as well as the person’s skills set and results on the job • It rewards for individual abilities and skills such as information management and project management skills, judgement, initiative, innovation and the ability to co-­­operateco-­‐operate. • It encourages each individual to deepen and expand their professional skills • It supports attainment of the joint objectives set for the workplace as well as co-­­operation co-­‐operation across functional and personnel group boundaries. • It is clear, geared to the long-­­term long-­‐term and consistent but can be changed flexibly when this is called for by the company’s operating environment or business idea. To function effectively, there must be a consensus on the principles underlying compensation policy, and the supervisor and salaried employee should discuss how job tasks are performed and the effects this has on salaries.