---
title: What do we mean by effective compensation?
description: We believe compensation should improve the performance of your employees and increase the value of your payroll. And compensation today isn’t doing that.
image: https://keepfinancial.com/hubfs/Social%20-%20Effective%20Compensation.png
---

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          - [Product Features](https://keepfinancial.com/features)
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###### Blog

# What do we mean by effective compensation?

 By [Kathryn Petralia](https://keepfinancial.com/blog/what-do-we-mean-by-effective-compensation#author-box) | Dec 4, 2023

![Effective compensation with Keep Financial](https://keepfinancial.com/hubfs/Social%20-%20Effective%20Compensation.png)

60% of full-time employees are stressed about their finances ([PwC](https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html#:~:text=Even%20among%20employees%20earning%20%24100%2C000,to%20sleep%20to%20self%2Desteem.)). As such, we’ve been talking a lot about the importance of **effective compensation**. 

So, here’s what we mean when we use that term:

- Compensation that cares
- Compensation that retains
- Compensation that returns 

Compensation that improves the performance of your employees and increases the value of your payroll. 

Compensation today isn’t doing what it should - recruit, incent, and retain. For many, bonuses are delivered with the intention of achieving those goals but they’re not sticking the landing in terms of value for either party - the employer or the employee. 

Today, bonus compensation is administered through payroll and lacks engagement, clear communication, and a unique element to distinguish it from ordinary compensation. 

At Keep, we’ve engineered an AI-powered compensation platform designed to deliver retention and engagement – starting with smarter bonuses. 

**Employees** should have full transparency into their compensation options and what’s required of them in order to earn more, with the ability to access compensation earlier based on performance or loyalty. 

**Employers** should be able to customize compensation to recruit, incent, and retain employees more easily – and prove they’re seeing a return.

Curious how you measure up when it comes to effective compensation? 

**Ask yourself these questions: **

1. Has my turnover rate increased in the last 6 months? 
2. Have my open roles remained unfilled longer than they did 6 months ago?
3. Has my employee engagement decreased in the last 6 months? 

If you answered ‘Yes’ to any of the above, let’s chat. 

We can help make effective compensation a reality for your company. Learn more at [KeepFinancial.com](https://keepfinancial.com/request-a-demo)

###### Tags

[Employers](https://keepfinancial.com/blog/tag/employers) [Blog](https://keepfinancial.com/blog/tag/blog) [Talent](https://keepfinancial.com/blog/tag/talent) [Employees](https://keepfinancial.com/blog/tag/employees) [Retention](https://keepfinancial.com/blog/tag/retention) [Compensation](https://keepfinancial.com/blog/tag/compensation) [Engagement](https://keepfinancial.com/blog/tag/engagement)

##### About the Author

![](https://keepfinancial.com/hubfs/Kathryn%20Petralia.png)

#### Kathryn Petralia

<https://www.linkedin.com/in/kathrynpetralia>

 Kathryn is the co-founder and president of Paid.

[More from this author](https://keepfinancial.com/blog/author/kathryn-petralia)

[Back to Blog](https://keepfinancial.com/blog)

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#### [Blog Increase Engagement in a New Way - Hello, Compensation Revolution](https://keepfinancial.com/blog/increase-engagement-in-a-new-way-hello-compensation-revolution)

[By](https://keepfinancial.com/blog/increase-engagement-in-a-new-way-hello-compensation-revolution)Keep Insights  | Aug 21, 2023

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[By](https://keepfinancial.com/blog/3-benefits-to-thinking-outside-the-box-on-compensation)Rob Frohwein  | Jun 1, 2022

[![](https://keepfinancial.com/hubfs/Imported_Blog_Media/Blog-Quitting-2.png)](https://keepfinancial.com/blog/traditional-compensation-is-broken)

#### [Blog Traditional Compensation is Broken](https://keepfinancial.com/blog/traditional-compensation-is-broken)

[By](https://keepfinancial.com/blog/traditional-compensation-is-broken)Kathryn Petralia  | May 18, 2022

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