Process
Designing a Plan
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 have a high level of credibility. 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 determining the elements for your compensation plan include:
- The form of company ownership
- Management style and degree of sophistication
- The organization's need to attract potential talent
- Stage of business development
- Short and long-term business objectives
- Financial condition and cash flow
External criteria include:
- Industry standards
- Existing competition in the marketplace
- Desired competitive position
- General economic conditions
Initial Phase of a Project 
Knowing what to look for, and which questions are the right ones to ask, are why
Compensation Resources, Inc. has been successful in helping a wide variety of clients. In the course of each consulting assignment, our professional team goes beyond the obvious. We will ascertain which factors in your industry, and more specifically in your organization, are the critical ones. By spending the time to understand your organization, we are able to more effectively design compensation programs that successfully meet your company's objectives. The process begins when we meet with you and members of your management team to discuss your company's situation 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 (9) 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 a thorough investigation and analysis
- Design an appropriate plan
Test and model assumptions
Prepare and review findings and recommendations
Assist in program implementation, communication, and training
- Provide on-going program support and follow-up
Properly constructed and implemented compensation programs will assist your company to maximize the use of its financial resources to achieve key business objectives. Comprehensive compensation programs allow your organization to grow and profit through a strategy that provides cost effective, highly motivational incentives.
