COMPENSATION CREATIVITY
We were approach by a financial organization that was having some Employee Relations issues among the senior management team. With further investigation it was revealed that with the shifting of responsibilities there were serious compensation issues. The pay didn’t match the responsibilities. The organization did not want to lose any one, but needed to resolve the inconsistencies in remuneration. They were further restricted on the ability provide more money or cut people’s pay.
P3 created a two step process to resolve the problem. First we did a comprehensive market survey to determine how serious the problem was. We had objective benchmarks to show the Board. Secondly, we established a performance management and incentive program that allowed funds to be directed to the team for goal achievement as a group and as individuals.
The critical factors were the additional money for the program, which came from “new” money generated by team performance and that it was distributed based on individual performance with a balancing factor. This technique adjusted the distribution based on the relationship of base pay to the objective market study. The focus was on tying total compensation to responsibilities and performance.