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Performance Management & Reward Systems| Practice Areas | Our Approach| Outsourcing

Practice Areas

In order to meet the specific needs related to a type of employee, such as sales positions or one type of compensation program, such as base pay, the Wilson Group has five primary practice areas:
sales compensation, executive compensation, variable compensation, base compensation and performance management/measurement.

This allows us to have flexibility in working with each client in one or more specialized program or with a type of employee.

Within each of the five practice areas, our approach includes development of reward strategies in alignment with our client’s strategic objectives. By creating a strategy that aligns the key success factors of your business with the rewards and incentives your company provides. Wilson Group has unique expertise in developing total reward strategies and systems that focus on the organization's key business drivers while building commitment. This results in increased shareholder and employee value, driving high performance for your organization.

An Integrated Approach to Reward Strategy Development
To link reward systems with business strategies so that they increase both stakeholder value and employee value, our development framework integrates four perspectives:

  1. The competitive context. A new basis for competing in today's marketplace is emerging. To take advantage of it, we need to fully understand the core drivers of success in your marketplace.
  2. The alignment with strategy and key success factors context. This determines how the organization will create a competitive advantage and build the culture needed for long-term success.
  3. Human resource capabilities. All HR programs need to ensure that the organization has the talent and abilities to implement the strategy.
  4. Commitment through reward systems. This provides the platform - including the systems, processes and practices - necessary to build the commitment of people to achieve success.

Wilson Group's Capabilities = Your Competitive Advantage
Our powerful assessment tools, approaches to strategy formulation, and in-depth industry and consulting experience bring focus to each client and provide solutions to your company's unique compensation problems. We have worked with many leading high-performing companies to:

Assess existing programs and practices for gaining alignment and commitment. Identify critical gaps and assess how important filling these gaps will be to the organization. Establish a reward strategy that fits the unique requirements of the organization. Develop action plans to address priorities and needs that are long-term focused and short-term specific.

Our work in developing a reward strategy and assessing the effectiveness of your current programs is achieved with input from senior managers, line managers, employees and human resources managers. Together, we build a strategy that works.

Sales Compensation

The sales function serves a critical role in determining the success of the commercial enterprise. Sales generate the revenues the organization needs to operate. The sales staff represents the organization in the marketplace and identifies the fit between customer needs and the organization's products and services. For many organizations, the sales staff is the critical link between the organization and its customers.

In high-performing companies, executives spend considerable time and effort to make certain the sales function is organized, staffed, trained and compensated in a manner that is consistent with the organization's strategy. There is alignment between the organization's needs and how the sales function operates. These companies use a well-defined sales process that creates a competitive advantage, such as the Science of Selling™ (provided by Sales Research Institute, a Wilson Group strategic partner). They are supported by sales information systems, such as Incentive™, which is available from Incentive Systems™ (another Wilson Group strategic partner). These actions result in a greater commitment to the goals of the organization and the ability to sustain market leadership.

Aligning Reward Systems with Success Factors
Wilson Group has unique expertise in aligning the total reward system of the sales organization with its strategy and key success factors. Our assessment tools, compensation designs, and in-depth experience bring focus to your sales staff and meaningful rewards for achievement. We have worked with many leading companies to:

  • Define and articulate what they need to succeed on an on-going basis;
  • Assess how well the sales organization is able to meet those needs; and
  • Develop customized sales compensation plans that communicate and reinforce critical actions.

The marketplace for strong sales talent is always highly competitive. However, it is often not just how well sales representatives are paid, but how they are rewarded that is critical to success. The organizations that are able to attract and retain desired talent understand what is important to their people and to the organization. They create opportunities for individuals to earn attractive rewards by demonstrating performance that supports the firm's strategy.

Collaboration Is Key to Success
We usually work in collaboration with representatives from throughout the organization - from sales, marketing, finance, operations and human resources departments. Together, we build systems that work. Because of this collaborative approach, the assessment and design process often reflects how the client wants the sales organization to work. The process focuses on key business drivers. It is success oriented and innovative. When we transfer knowledge to our clients, they become committed to successful implementation. In the end, our clients demonstrate their desired results in top-line revenue and bottom-line profitability. That is what winning is all about.

Variable Compensation

High performing companies have one thing in common - they create opportunities for their people to share in the success they help create.

Variable compensation programs can be powerful mechanisms for linking an organization's strategy with desired actions. Whether the compensation is for teams or individuals, an entire organization or a specialized group, for short-term or long-term performance, delivered in cash incentives or stock options, it is critical to align what is needed with how it is rewarded.

Variable pay programs are increasing in most organizations. They are extending to lower levels, and their performance measures are becoming better linked to individual, group and organizational success. Organizations that use variable pay programs enjoy an effective competitive advantage in the marketplace.

Determining the Right Approach for Your Organization
The Wilson Group can identify what is needed for your variable pay programs to succeed. Our assessment tools and analysis can assist you in determining whether a variable pay program will have the desired impact on performance. We examine measurement systems, management support, performance management practices, culture and trust, and other factors that are essential for success. Variable pay is not appropriate for every organization. We will first advise you whether you should proceed. If we find that variable pay programs can work in your organization, we will work with you to develop them.

Customize the Program to Your Requirements
When variable pay programs are adopted from other organizations, they often fail. Each organization pursues different strategies, and has a unique culture and organizational requirements. Wilson Group works with key representatives from the organization to design variable pay plans that fit effectively within the organization. We serve as design experts, educators and facilitators for our clients. Our knowledge of - and ability to apply - tools, methodologies, benchmarking data and frameworks is based on the experience of successful companies. As a result, we create high-impact variable pay programs, while helping clients develop their internal capabilities to manage and improve them over time.

By working with the Wilson Group, you can realize benefits that go well beyond financial returns. You can increase your focus on key performance issues, and strengthen the commitment to success throughout your organization. You can enhance your ability to compete and to succeed. Be careful what you measure and reward - you will surely get more of it.

Executive Compensation

The marketplace for strong executive talent is always highly competitive. Positioning your executive compensation competitively with the appropriately defined talent market is an important step in attracting and retaining key executives.

Equally, if not more important, than how much your executives are paid is how they are paid. This drives organizational alignment, improved performance and competitive advantage.

Executive compensation programs should be designed to answer questions such as:

  1. What measures should be incorporated to ensure that executive interests are aligned with those of key stakeholders?
  2. What is the correct mix between base, short-term and long-term compensation?
  3. Are the programs, measures, and outcomes driving the executive actions and behaviors that you need to be successful?
  4. How can the compensation levels be justified by the performance achievements of the organization?

Choosing the Right System
While a comprehensive understanding of executive compensation within your competitive marketplace is helpful, it is most important that the programs we develop fit the client's culture and business strategy and are attractive to the executive team, as well as acceptable to key stakeholders. We will help you view executive compensation through a new lens, unbiased and clear, so that it can make a real difference in your business.

The Wilson Group has unique expertise in aligning the executive compensation system with the strategy and key success factors of the business. Our powerful assessment tools, compensation designs, and in-depth experience bring focus to each client and provide customized approaches to your unique requirements.

Aligning Reward Systems With Success Factors
The Wilson Group has worked with boards and executives from many leading companies to:

Assess the competitiveness of total compensation packages for key executives, including base salaries, short-term incentives, long-term incentives and perquisites; Design short-term and long-term executive-incentive programs that are linked to organizational performance and aligned with key stakeholder interests; and Develop customized executive plans that communicate and reinforce critical goals and strategies.

Our work is usually performed in collaboration with both the board and senior executives to ensure that objectives, measures and outcomes are mutually agreed upon. Together, we build systems that drive the performance needed to succeed, while bringing integrity to the process.

Base Compensation

A well-designed system for delivering competitive base pay to your employees is a key element of any effective reward system portfolio. While historically seen as a maintenance element or even a "necessary cost" of doing business, companies today realize that they need to demonstrate the value of this significant cost.

A focused, streamlined base pay plan can greatly enhance both the organization's operational effectiveness and its attractiveness quotient. Sound base pay tools and practices will provide a strong framework for integrating a variety of reward programs, including variable pay, recognition and performance management.

Organizations today share two conflicting realities:

  • While competitive pressure to manage expenses is severely limiting base compensation budgets, wages and salaries remain one of the largest single operating line items - one that must be effectively managed.
  • The growing economy and tight labor market has made attracting and retaining the best talent more difficult - and more expensive - than ever.

The Wilson Group assists companies in identifying and developing innovative ways to:

  • Use limited salary dollars creatively;
  • Respond to industry and geographic market trends and salary movement;
  • Reflect both organizational values and employee needs;
  • Increase the involvement and accountability of line managers to manage base pay;
  • Keep the whole process simple to understand and administer; and
  • Encourage development and expanding capabilities.

Determining the Right Approach for Your Organization
The Wilson Group works hard to understand your company - its unique business, culture, values and goals - beginning with an assessment and analysis process that helps us collaborate with you to determine the most appropriate approach to base compensation. We assist in defining your competitive market position, and internal pay trends and issues, while looking closely at your base pay delivery system to determine if it supports your company's direction.

We work jointly with management and other key individuals to build tools for describing, categorizing and quantifying the value of your jobs in relation to each other and to competitive markets. Our approach focuses on identifying and describing what you and your customers want and need from your employees. Then we construct systems in which people are paid effectively for "doing the right thing."

Keys to Success
By working with clients from a variety of industries, we have learned that there are a few common success factors that make base compensation programs highly effective. These are:

  • Pay for what your organization truly values - the skills, behaviors and results that support your growth and success.
  • Integrate the base pay program closely with other elements of your reward system and the whole will be much greater than the sum of its parts.
  • Communicate the program and train managers and employees so that they share an understanding of program value and will be more likely to use it effectively.
  • Keep the system dynamic by making periodic adjustments in tune with the external market and, most importantly, changes in your business strategy.

The Wilson Group's skilled, flexible and collaborative style will yield an approach to base pay that is based on these success factors in order to enhance the competitiveness, effectiveness and value of base compensation.

Performance Management/Measurement

Many companies have performance management programs, but few are satisfied with them. There are perhaps as many reasons for this as there are organizations. Many frequently see the process as too time consuming for the benefits that result, others seek to understand what other companies do and to use the latest "gimmick" in hopes of improving the value of the process. There is no single right approach, but there are several elements that make these processes effective—for both the organization and its members.

The Primary Elements of Successful Performance Management
In working with companies in a wide variety of industries and having conducted numerous research efforts in this area, we have found these fundamental elements occur in successful programs:

Employees know what they are responsible for and see how their work is linked to the broader strategy, goals and priorities of the organization. Managers help to translate company goals into individual actions, then provide people with the coaching and assistance to make them successful. People know how they are doing on a regular basis. They often receive and discuss frequent, ongoing feedback that indicates how they are doing. There are clear consequences to one’s actions. Positive consequences can be higher than average merit pay increases promotions, special bonus awards and other forms of non-cash recognition. Negative consequences can include performance warnings. The process is simple, supported by consistent tools and procedures that are legally defensible. The human resource department is not focused on compliance, but provides the tools, training and assistance needed for managers to fulfill their responsibilities.

What the Wilson Group offers:
Our collaborative approach to performance management goes beyond the simple view of this process as a training intervention. Rather, our approach builds commitment, utilizes tools that fit the style of the organization and develops programs as a means to increase understanding, commitment and excitement about the process. Therefore, we can provide our clients with:

  • An assessment of their current programs and practices,
  • A process to develop a performance management program to fit your unique requirements and style,
  • A set of tools, adapted to the process, that provides assistance and consistency,
  • Training of executives and managers in their custom developed process,
  • Assistance with the implementation and monitoring of the progress and
  • Recommendations on the technology needed to support the program over time.

The Wilson Group feels that there are effective performance management systems. Often a key characteristic of high performing organizations rests with the alignment of an organization’s strategy, performance management process, people management practices and rewards and recognition. Taken as a total framework, they provide an unparalleled approach to establishing enduring competitive advantage.

Need more information? Please e-mail us at  info@wilsongroup.com.

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