Reward & Performance Management Services |
Our Perspective on Compensation |
The reward plan integrates all the elements in your human capital stategy to drive your success:
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Reward - Integration |
Across key internal & external populations:
- Fixed cash (salaries) maintains competitiveness
- Basic benefits package supports competitiveness & internal equity
- Variable cash (annual incentives) reward results
- Executive benefits & perquisites support customization & retention
- Long-term incentives (equity, phantom stock, performance units) provide strategic linkage
- Employment contracts & supplemental rewards integrate the elements
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Performance & Reward - Linkage Problems |
- Everyone "pays for performance"
- Few companies successfully link rewards to results
- Metrics get confused across levels/functions
- Plans get "gamed" when linked to pay
- Without the right competencies, executives rely on mechanical formulas
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Turning Pay into - Pay for Performance |
- No one-size-fits-all model
- Successful programs reflect company strategy, economics & culture
- Programs need:
- strategic, financial, operational & individual goals
- Compensation & incentive goals
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The Difficulty of - Changing Pay |
- It's never the "right time"
- The pay program may be the best friend of the status quo
- The reward system may also be the best tool for managing strategic change
- The half-life of an executive reward plan may be only one or two years (static plans will fail)
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Our Reward Development Process: A Conceptual Road Map |
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Our Edge - In Reward & Performance Management Services |
- Balancing art & science
- Providing independence, sound advice & quality service
- Using superior tools:
- Broadest cross-industry benchmarks
- Technology used for real-time responsiveness & HRIS integration
- User-friendly communication
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