The Wilson Group

Special Interest:

Manager and Employee Total Rewards:
Transforming Compensation to Performance Based Rewards

Why Be Concerned with Manager and Employee Compensation?

High performing companies have one element in common: They have a workforce that understands and is highly committed to the strategy of the company. People know how well they are performing and belief their work is important to the success of the organization. These attributes come from well designed and implemented compensation plans. They not only communicate key messages about the firm’s strategy and priorities, they create an opportunity for managers and employees to share in the success that they help create. Consequently, compensation plans form a critical foundation for effective leadership.

The difference between compensation and rewards is how they link to performance. Our approach aligns the performance requirements of the organization with how it designs and manages base salary, variable cash compensation, equity based compensation, performance management, and performance recognition. Each program has certain strengths and weaknesses related to reinforcing desired performance. The challenge is to use each of them in a systematic manner so they provide the impact where they are most effective and their weaknesses are offset by other programs. This provides managers with the processes and tools to build a distinctive, competitive and successful organization.

Critical Background Questions for Developing Total Rewards:

1. What are the critical jobs and how do they contribute to the firm’s performance?
2. What are the overall and function/job specific performance metrics? How are the goals established?
3. What are the primary sources for people to fulfill key jobs? Are they recruited externally or internally promoted? What are the primary career paths within the organization?
4. How competitive are the organization’s current base and total compensation to the primary markets for talent? How competitive should the company be in these areas?
5. What is most important to the people in these positions? What do they value most/least in working with the company – What are their expectations for rewards?
6. How and how often do people hear how well the company (or their unit) is performing and how they are performing in their jobs?
7. What are the appropriate components of compensation for each type and level of job?

What the Wilson Group offers:

Wilson Group consultants help our client organizations clarify needs, assess current situations and find the most efficient way to address workforce issues. As stated in our practice area materials, all engagements relate to implementing the organization’s strategic plans, reinforcing core values and desired culture, and achieving high performance.

To illustrate, some of our client engagements that impacted managers and employees include:

• A new integrated base and variable cash compensation program for high level individual contributor and management level employees that resulted in dramatic reductions in turnover and increased performance in key areas of the company.
• Assessment of the competitive market for key managers of a manufacturing firm in 12 countries.
• Salary planning process and tools that enhanced the performance focus of an organization’s merit increase process.
• A new equity program for a global organization that provided equity to high performing and high potential employees that were relocating their headquarters to the United States.
• The development of a recognition program for non-faculty managers and employees in a world-leader academic institution.

Please contact us at 978-371-0476 or at info@wilsongroup.com.