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​​​​​Organizational effectiveness is best reinforced when systems, business processes and jobs change in step with evolving markets and customer expectations. The design of a wage and salary program that motivates employees and ensures fair pay for all positions in the organization is one of the biggest challenges facing any organization.

Heightened industry competition, new technologies and an aging workforce are other challenges changing how we think about our workforce requirements for the future. To retain the most talented staff and attract high-quality executives, compensation programs must deal with this ever-changing environment in a fair and equitable manner.

Sound compensation strategies also encourage strong employee performance and keep morale high. A clearly defined process for specifying pay grades, raises and bonuses can also protect the company from potential liability related to perceived unfairness in the compensation and promotion process.

Our compensation model was developed specifically for electric cooperatives and G&T systems that need a flexible and easy-to-administer wage and salary program.

Compensation Model Design

Our wage and salary system helps co-ops meet these workforce challenges. Our system, developed by NRECA in 1985, has proven to be an extremely effective tool for more than 300 member systems.

Our compensation model allows human resources managers to integrate the external compensation environment with internal job relationships to provide equitable and competitive pay grades. The system is based on a complex statistical model using a simple but effective point factor system to evaluate all positions and assign internal values. External salary data gathered from the National Compensation System and other respected industry sources are used to competitively integrate local, regional and/or national salary data as appropriate for various job groupings to create unique comparables that address specific demographic or geographic concerns.

By defining the parameters of fair market value for jobs at the co-op, our model provides the board of directors and management with a significant planning and budgeting tool that can serve as a key component of the organization’s management information system for both human and financial resources.

  • Learn more​ about our compensation ​model and its benefits.
  • Watch our On-Demand Webinar​​ to learn how to create a market analysis to ensure that your co-op stays competitive and that your compensation aligns with your business strategy.
  • How can we help? Answer a few questions about your system and we will follow up with you to develop a proposal customized to meet your compensation needs.

For more information, contact Delaine Orendorff, delaine.orendorff@nreca.coop, 571- 289-9023