It is important to ensure that the approach taken is guided by the compensation philosophy and is applied consistently. Ensuring that established guidelines are followed will prevent offering a compensation package so tailored to a person that the organization is jeopardized by having too heavy a financial burden or that flexible arrangements actually hinder the critical work from being completed. It takes a carefully crafted balance between the organizational needs and the individual considerations to arrive at the optimal compensation structure.
Answering these questions will help to formulate the appropriate balance:
From the organization’s perspective:
• Will you hire an employee or a contractor? Do you understand the difference? For more information visit:
• Canadian Revenue Agency: Employee or Self Employed
• HR Toolkit: Non-standard Employment Relationships
• What will the role be doing?
• How much responsibility will they have?
• How specialized are the skills required to do the job?
• How much experience do they need to have?
• Are there others doing the same work? Are their responsibilities established? Is there alignment?
• How many people could potentially apply?
• Can you find a comparable job in a salary survey or on a job-posting website?
• How would not having this role filled impact your business?