If you are struggling with compensation issues with your business, it’s likely you’re thinking about bringing in an outside firm. This can be extremely helpful for businesses who are ready to undergo this type of restructure. There are some key indications that you should look for to verify that your business is ready to make that call to an outside compensation consultant.
If you’re dealing with a lot of overwhelm due to a lack of real structure in your business, it’s time to think about a compensation consultant. These experts can come in and assist in formulating an organized structure that combines all of your compensation plans together. Specific pay plans can be confusing when you don’t understand how they interact with other compensation factors you have set up in your business. With one overarching compensation structure, you can see the big picture of how your plans and compensation factors combine together. This will allow you to better understand what your financial commitment is and how it gets dispersed throughout various departments.
Understanding the right salary grades to offer your employees that is competitive with other businesses in your industry is a must. Unfortunately, most firms don’t go beyond simply seeking out what specific pay amounts are being offered by their competitors. This is only one step of the process of determining your own salary pay grades. Other considerations include comparing data with internal equity, analyzing compatible compensation with your business philosophy, and many more. A compensation consulting firm will be able to take the necessary time to collect relevant industry data and do an in-company analysis to ensure your salary pay grades are right for your business.
In order to offer incentives to your employees, whether on a quarterly or annual basis, you need to have metrics. These metrics are minimum standards your employees must meet in order to achieve these incentives. In most businesses, these metrics are either too discretionary or include too many factors that cause confusion among employees. In both of these scenarios, employees become confused at what they need to do and management personnel doing the evaluations do so based on their own agenda. A compensation consultant can help to even the playing field and make metrics that are clear to your employees and management.
Having a good plan to attach your compensation structure is only one part of a successful equation. The second part is implementation and many businesses tend to let this part lag, leading to disgruntled employees and confused managers. Consultants can help to ensure that the ongoing statutory, communication, administrative, and financial sectors all get taken care of on a regular basis. These areas of your compensation plan ensure that it stays working well into the future when they are executed correctly. Your consultants will periodically ensure the program is running effectively and help to showcase where issues are arriving so you can deal with them before they ruin the compensation plan.
As you can see, there are many indicators that are telling you it’s time to hire a compensation consultant. Although you may not know exactly where to start, you should give a consultant a call and they should be able to lead you on a successful path. Remember that investing in your most important assets, your employees, you’ll always have success in your industry.