Knowing what to look for, and which questions are the right ones to ask, is why Compensation Resources has been successful in helping a wide variety of clients. In the course of each consulting assignment, our professional team goes beyond the obvious. By spending the time to understand your company, we are able to more effectively design compensation programs that successfully meet your objectives.
The process begins when we meet with you and members of your management team to discuss your company’s culture and perceived needs, as well as thoroughly explaining our process. Based on this input and our assessment, we will devise a suggested plan of action.
In most cases, the study will typically cover the following nine steps:
- Prepare a work plan covering approach, timetable, responsibilities and deliverables
- Clarify your compensation strategy (as it relates to your business plan)
- Identify resources and collect data
- Conduct thorough fact-finding and analysis
- Design a program that aligns with your unique environment
- Test, model and discuss alternatives
- Prepare methodology, findings, observations and recommendations report
- Assist in program implementation, communication and training
- Provide ongoing program support and follow-up
Considerations
In order for a compensation program to be well-received by the employees and serve as a source of motivation, it must be easily understood and credible. This requires a simple, straight-forward program that can be easily communicated to employees. The program must be linked to the organization’s human resource philosophy to ensure that solutions are realistic. Consideration and application of both internal and external factors focuses on incorporating important elements into the plan’s design.
Internal criteria used in evaluating effectiveness of compensation:
- Form of company ownership
- Need to attract potential talent
- Stage of business life cycle
- Short- and long-term business objectives
- Financial condition and cash flow
External criteria include:
- Industry standards
- Existing competition in the marketplace
- Competitive Positioning
- Labor pool
- General economic conditions
