Skip to content

Compensation Design

We can design compensation systems and help you apply them to improve your reward practices. Better program and process design leads to more effective and efficient rewards. All solutions include relevant training and knowledge transfer, so you are not held hostage to a consulting firm.

Base Pay Grade Structure

  • Pay Range Structures: number of structures, number of grades; universal or function-specific; regressed or non-regressed, etc. Includes full simulation, modeling, impact/cost analysis
  • Specialised approaches when you don’t have any/enough market data
  • Communication and training
  • Implementation guidance, including downward and upward impact, buyouts, employee consent issues, etc.
  • Annual updates and structure maintenance

Read Top 7 Risks when Building a Grade Structure

Job Evaluation

  • Job analysis and documentation, using questionnaire and interview techniques
  • Implement job evaluation process and methodology – Paterson job evaluation
  • Evaluate jobs using Paterson (5 equally weighted factors), correlated to Mercer PC, Towers GG, Hay, etc.

Fees are per job, or priced as a project (reduced per-job fee, plus a project fee)

Incentive Design

  • Short-term or long-term incentives
  • Equity (share) based, or cash based
  • Define purpose, scope and objectives
  • Determine best type of incentive (target-based, sales commission, profit-sharing, gainsharing, etc.)
  • Eligibility and target opportunity
  • Performance measures and metrics, including selection of financial and non-financial
  • Setting targets, thresholds, maximums and corresponding payout levels
  • Addition, multiplication, gates, kickers, accelerators and other mechanics and design decisions
  • Modeling and illustrations
  • Internal review and approvals
  • Documentation and communication

See Corporate Incentive Review Guide

Annual Salary Review Support

  • Salary budgeting
  • Market analysis and compa-ratios
  • Modify salary budget recommendations based on market analysis
  • Develop/update salary ranges for the new year and the review
  • Prepare HRIS data for the salary review
  • Develop a merit matrix (salary increase guideline)
  • Develop a manager input tool and process for rollup/consolidation/approval
  • Personal compensation statement
  • C&B team training on managing the salary review process
  • Manager training on making and communicating pay decisions

High, medium and low involvement options. Fees linked to size and complexity.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: