For example, companies with strong diversity goals may choose to prioritize recruitment and retention of underrepresented groups, offering competitive pay packages and benefits to attract diverse talent. By aligning compensation with the organization’s D&I vision, compensation professionals ensure that the company not only talks about diversity but also supports it in tangible ways.
1. D&I as Part of Total Compensation Strategy Business acumen in compensation also involves a holistic approach to total compensation. Total compensation includes not just base pay, but also bonuses, benefits, retirement plans, and other rewards. Compensation professionals need to understand the full scope of what constitutes employee compensation, and how these elements can be leveraged to create an inclusive work environment.
For instance, a company might offer leadership development programs specifically designed to support underrepresented employees, giving them the tools they need to advance in their careers. Business acumen ensures that these programs are integrated into the broader compensation strategy, and that they are accessible to all employees who may benefit from them.