| |
Business and Professional Service Compensation
Overview:
CRI has extensive experience working with Business and Professional Service firms to develop effective compensation programs that are aligned with organizational goals and objectives. Types of firms served: - Accounting
- Advertising / Marketing
- Architecture
- Business Service
- Consulting
- Law Firms
Case Studies:
Case Study #1: Executive Compensation Analysis - Consulting FirmIssues: - Board of Directors wanted to align total compensation package for Senior Management with competitive market
- Board wished to implement formal incentive compensation program, including short- and long-term incentive awards
- Board wanted to tie incentive awards to demonstrable results
Solutions: - Interviewed Board members in order to understand the organization's culture and to confirm their position on compensation
- Interviewed executives to fully understand their duties and responsibilities
- Conducted a market analysis to determine the competitive level of compensation utilizing published survey and peer proxy data
- Developed appropriate salary grades and ranges for Senior Management
- Provided recommendations to the Board of Directors regarding base salary, annual incentive, and long-term incentives
- Designed the plan documents covering the short- and long-term incentive programs, and assisted with each program's on-going implementation
Case Study #2: Sales Compensation Program - Business Service CompanyIssues: - Current group sales incentive had so many variables that there was a questionable relationship between goal achievement and appropriate payout
- Management desired to streamline sales compensation process
- Management needed to focus sales incentives on definitive results
- Compensation levels were not aligned with competitive market
Solutions: - Adopted a Sales Compensation Philosophy that integrated sales compensation with the business objectives and marketing direction of the company
- Evaluated competitive market to determine base salary and commission levels
- Designed sales incentives based on desired mix of fixed and variable compensation
- Determined appropriate commission levels based on size and complexity of sales responsibilities
- Developed sales compensation guidelines and procedures to ensure consistency
|
|
|
