In today’s competitive market, companies are increasingly recognizing that strong organizational culture and equitable pay practices go hand in hand to drive success. Eddie Geller, CEO & Founder of SKOR, and Lola Han, CEO & Founder of Kamsa, weigh in on how businesses can leverage these values to attract and retain top talent while boosting profitability.

The Link Between Culture and Pay

According to Eddie Geller, prioritizing people and culture is key to achieving extraordinary business outcomes and profitability. 

SKOR’s methodology highlights three pillars of a strong culture:

1. Cohesion: Fostering unity through shared values, mission, and a sense of belonging that align everyone in the organization.
2. Clarity: Have well-defined goals, expectations, and transparent communication throughout the organization.
3. Courage: Embracing a growth mindset, and fostering an environment where people feel safe to take risks and learn from failures.

Compensation is foundational to culture, signaling how much a company values its employees. "Paying fairly is a signal that the company values and respects employees’ contributions," says Lola Han.

Practical Steps for Leaders

To create cohesive and equitable practices, organizations should:

✨ Develop a Compensation Philosophy
Define the why behind pay decisions; fosters unity and consistency; it helps create unity and consistency around compensation.

🚀 Create Job Architecture
Conduct job leveling  and career paths throughout your organization. This not only helps leaders plan for the roles they need to achieve their goals but also provides employees with clear expectations for career growth and advancement. 

🛠️ Benchmark Pay Regularly
Keep your finger on the pulse of pay health by calculating compa-ratios—an employee’s salary divided by the midpoint of their salary range. A compa-ratio of 100% means they’re at the midpoint. Regular reviews prevent pay gaps from piling up. 

🔍 Embrace Pay Transparency
Decide on your transparency strategy and communicate it consistently.  Invest in reliable market data to create accurate pay bands, so you’re confident they align with current trends.

Tools for Success

SKOR provides insights into workplace culture, while Kamsa offers global market compensation data and consulting services to ensure pay strategies are both competitive and fair.

By regularly assessing culture and pay health, companies can align their strategies to create supportive, growth-oriented environments. As Lola Han puts it, "Healthy culture and competitive pay are not an either/or situation — they’re both crucial for business success."

To assess your company’s culture score, access SKOR’s Snapshot here.