When it comes to pay, employees want to know that their salaries are fair and competitive. We understand that.
At Navistar, we use a number of benchmarks to ensure that our compensation system is sound, competitive, and comprehensive. We begin by looking at three key components:
Market-based pay. We look outside the company to see what other leading companies are paying their employees for similar positions requiring comparable education and experience. We also look within Navistar to make sure that jobs with similar responsibilities, accountabilities, and value to the organization generally provide similar pay. People like to know they are being treated fairly.
Pay-for-performance. We look at different ways to assess pay-for-performance. For example, we know that a job requiring more skill or responsibility should generally pay more than a less demanding job. We segment all of our jobs according to specific salary bands and organization levels, so that the relative value of those positions to the company is clear. We also recognize the connection between achieving performance goals and rewarding that achievement. Navistar's compensation program clearly describes the relationship between performance expectations, percentage increases, and the timing of those increases.
Incentive-based compensation. There is potentially more to compensation than base salary. Bonuses or recognition awards are examples of possible incentive-based awards. Variable or incentive-based pay is what Navistar uses to motivate, focus, and direct employees' efforts toward achievement of business unit and corporate goals. Employees' efforts are rewarded when Navistar achieves its corporate performance goals. Eligibility for incentive-based pay varies based on the employee's role and level in the company.
Isn't choosing or staying at a company always about money?!
For most people, money is just one of the factors in deciding where to work. That's not to say money isn't important—we all know that it is. But most people don't base their decision to join or stay with a company solely on money.
We've looked at competitors' compensation programs, talked to compensation experts, and surveyed our own employees to find what people want from work. The conclusion: Money is important, but people also want to feel that they are being treated fairly, that they are respected, and that their contributions are acknowledged and valued. They want bosses who provide solid feedback and who are good to work for. They want a job that interests and challenges them. They want the types of Total Rewards offered by Navistar.
