What is comp design?

Comp design, also known as compensation design, refers to the process of creating a compensation structure or plan within an organization. This involves determining the various components of an employee's compensation package, such as salary, bonuses, benefits, and stock options, and how they are to be allocated.

Some factors that may influence comp design include the company's overall budget, industry benchmarks, employee performance, and market demand for certain skills or positions. The goal of comp design is to create a fair and competitive compensation plan that attracts, retains, and motivates top talent while aligning with the company's goals and objectives.

Comp design can also involve analyzing and adjusting existing compensation structures as needed. This may involve conducting market research, evaluating the effectiveness of current plans, and making changes to better align with employee needs and company goals. Ultimately, comp design involves finding the right balance between offering attractive compensation packages to employees while remaining financially sustainable for the organization.