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Compensation Plan Design

 

Our Human Capital Consulting (HCC) compensation experts have extensive experience in helping clients develop effective compensation strategies that drive both employee and organizational performance, including base and executive pay plans, incentive plans and total rewards strategies.

Learn more about how SilverStone Group can develop a sound compensation plan strategy for your business; call 402.939.6757 or 605.782.9898 today.

Base Compensation
A base pay system that is both internally equitable and externally competitive is essential to organizational success. After understanding how compensation fits into your company’s overall objectives, our HCC team will work with you to create and implement a compensation plan that:

  • Is in compliance with all laws & regulations regarding compensation
  • Establishes pay grades & ranges to provide consistency throughout the organization
  • Is cost effective for your business
  • Supports your promotion & retention strategies

Executive Compensation Plan
Executive compensation has come under intense scrutiny in recent years. Many companies are looking for outside expertise to help guide them in striking the right balance between market competitiveness and shareholder objectives. If you need assistance in developing a fair executive compensation plan, we can help.

SilverStone Group’s HCC Team can assist you, your Board’s Compensation Committee and/or your Board of Directors in the following areas:

  • Providing market benchmarks & industry trend analysis to ensure compensation plan competitiveness
  • Creating the right mix of base, incentive & equity ownership in an executive’s total compensation plan
  • Aligning executive compensation plans with the short- & long-term objectives of shareholders, as well as the corporation
  • Managing the tracking & costing of the executive compensation plan over time
  • Encouraging accountability within Compensation Committees of the Board
  • Helping not-for-profit organizations comply with laws related to intermediate sanctions

Incentive Plans
An incentive bonus pay plan provides after-the-fact, discretionary, extra-cash compensation (in addition to base salary) to employees according to productivity, profits, savings, and/or cost avoidance. If designed properly and used in conjunction with a sound compensation plan, this type of variable pay plan creates accountability and aligns the goals of the employee with those of the employer.

Years of experience with incentive plan design and implementation have helped us to identify the factors that make a plan successful. Our consultants will work with you to ensure that:

  • Eligibility is clearly defined & limited to key members whose judgments & decisions truly impact overall results
  • Performance targets are easily understood & easily measurable
  • The criteria for measuring performance & results are clearly communicated to participants
  • Award levels are significant & competitive enough to motivate employee performance
  • A formal mechanism is in place to determine bonus funds

Total Rewards
Total Rewards refer to everything that an employee receives in exchange for coming to work. It is a broader concept than compensation alone and includes direct rewards (pay and incentives), indirect rewards (benefits) and intrinsic rewards (quality of work life).

In addition to helping you with your compensation plan, our Human Capital consultants will help you create a Total Rewards strategy that aligns all direct, indirect and intrinsic rewards to drive employee and organizational performance, while also encompassing the competitive environment, management’s values and style, and the organization’s culture and work roles.

At SilverStone Group, we live what we teach and have embraced a total rewards philosophy for many years. Examples include a carefully designed Wellness program that improves the health, productivity and quality of work life of our employees and integrated performance management and incentive plans that provide clear expectations and accountability and drive organizational results. As a result, we are a recent multi-year winner of Business Insurance's “Best Places to Work in Insurance” award, a 2014 recipient of the “Gold Well Workplace Award” from The Wellness Council of America and a 2009 recipient of the Governor’s Excellence Award.

Job Description Reviews
While the compensation plan, screening, and interviewing are a big part of the process, successful hiring begins with a well-crafted job description. Writing accurate job descriptions is one of an organization’s most important, yet time-consuming tasks. Great care must be taken to ensure that job descriptions meet the necessary goals of equity and consistency, define expected outcomes as well as a job’s boundaries, and document the essential job functions to be used in accordance with the Americans with Disabilities Act. Finally, job descriptions are essential to successful hiring.

SilverStone Group’s Human Capital Team can help by assisting your organization in writing and updating job descriptions, as well as by conducting employee/supervisor interviews to gather essential data for those descriptions. Although we typically conduct job description reviews as part of the development of a broader compensation plan or rewards strategy, this type of work can also be done as a stand-alone project.

Market Analysis
Attracting and retaining the right employees requires a competitive compensation plan. Given salary and benefits data is usually proprietary, how do you know whether your company is on par with the rest of the market?

Our compensation experts maintain a comprehensive library of third-party compensation plan surveys, including executive level compensation and employee benefit data, which allows us to perform a compensation plan market analysis based upon organizational size, industry and geographic location. Our consultants compare your organization’s compensation plan structure against industry benchmarks and prepare compensation recommendations for each position we evaluate. Finally, we publish an annual summary of projected merit and pay range increases to help you remain current.

See how SilverStone Group can help you develop a competitive compensation plan for every level of your organization; call 402.939.6757 in Omaha, NE or 605.782.9898 in Sioux Falls, SD today.

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