Client Compensation Realignment Project

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Client Compensation Realignment Project
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Compensation Project

• Client History
• This client had grown from 30 employees to over
  100 in just 18 months and had salaries all over
  the board. Some employees had large base
  salaries and low bonuses and others had just the
  opposite. Some employees, doing the same job,
  were being paid differently for slight
  differences in background based upon when they
  were hired and by whom they were hired. The CEO
  wanted to make sure he was paying the appropriate
  salaries, move the company to a performance based
  system that would level out total cash
  compensation and provide additional reward to
  employees for setting and meeting goals.

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Compensation Project

• Project Goals
• This compensation project consisted of
  accomplishing the following goals
• Conduct a job analysis of all employees
• Obtain current base, bonus, and total cash
  compensation data for comparable companies.
• Realign salaries to fair and consistent
  standards.
• Develop Performance based compensation plan
  (PBCP) with all associated forms, overheads,
  training manuals, and materials.
• Leverage materials for an annual employee review
  process.

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Compensation Project

• Project Components
• Job Analysis
• It was decided to use AON Consulting's Radford
  data for survey purposes
• Each employees position was analyzed, compared,
  and matched to a corresponding Radford job
  description and code.
• Positions were leveled according to the
  characteristics of the position and the level of
  responsibility.

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Compensation Project

• Project Components
• Survey data
• With the client, we determined a list of
  comparable companies and decided on a
  compensation payment philosophy (Xile for
  base, bonus and total cash compensation).
• Next, we pulled the appropriate Radford data.
• Charts were developed comparing existing salary
  data and compared to Radford data.
• Compensation data was then individually adjusted
  (where appropriate) and realigned to appropriate
  levels taking into account job differences and
  background.

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Compensation Analysis
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Compensation Analysis
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Compensation Project

• Project Components
• PBCP
• Working with the CEO and CFO, we determined a
  performance objective philosophy that led to a
  Performance Based Compensation Plan (PBCP).
• Next was developed an easy to use and track tool
  - Quarterly Performance Score Card.
• Next we developed an employee and manager
  handbook.
• Lastly, an overhead presentation was developed to
  explain the program to employees and managers.
• The following selected pages are from the
  overhead presentation.

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Performance Based Compensation Plan (PBCP)

• COMPANYs Compensation Philosophy
• COMPANYs compensation philosophy is to pay
  employees at the most competitive market rates.
• Your compensation consists of
• Base salary
• Performance based compensation plan (PBCP)
• Benefits (medical, dental, vision, disability
  insurances, etc.)
• Employee perks (health club, meals, sports, etc.)
• Company stock options

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PBCP

• The philosophy of the PBCP Plan
• It allows individual achievement to be rewarded
  consistent with ones performance contribution.
  The company believes that your success can be
  achieved by balancing at least 3 factors
• Commitment and execution to your quarterly
  Individual Objectives
• Commitment to your own personal growth and
  development (Training Objective)
• Commitment and execution of our Company Values
  and your Department Goals
•  
• The first of these is the most important. We
  want you to deliver what you say you will do.

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PBCP

• PBCP Setting Objectives
•  
• Individual Objectives - are to be within your
  ability to influence the resources necessary to
  accomplish, and are to be realistic, measurable,
  and achievable.
• Training Objectives- aid in your growth within
  your position or the company.
• Stretch (BHAG) goal - is a goal that is most
  likely out of your complete control, but is
  within your ability to influence the outcome,
  which when achieved is beyond you and your
  supervisors expectations.
• Department Goals and Corporate Values - aid in
  the growth of your department and our company.

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PBCP Tracking Tool - Front
SAMPLE
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PBCP Tracking Tool - Back
SAMPLE
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PBCP

• Determining and calculating the amount of the
  quarterly PBCP
• You will receive the percentage of your PBCP
  equal to the number of points received (100
  points equal 100 of your PBCP).
•  
• The majority of the actual incentive you receive
  is based on how you perform on your Individual
  Objectives along with some element of Training
  Objectives and support of our Company Values and
  your Department Goals. Your Individual and
  Training Objectives add up to 100 points.

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PBCP

• Determining and calculating the amount 
• Your supervisor may award you 100, 50 or 0 of
  the points for each Individual and Training
  Objective.
• Example - You fully accomplish two out of your
  three objectives and those two total 70 points,
  and then you would receive 70 points of your
  PBCP. If you accomplish some of a third
  objective worth 20 points, your manager can award
  you 50 of the points or 10 points. That would
  bring your total to 80 points.

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PBCP

• Determining and calculating the amount 
• If you contribute to the Department Goals and
  Corporate Values, you will receive additional
  points.
• More than 100 - If you accomplish all of your
  Individual Training Objectives and contribute
  to Department Objectives and Corporate Values you
  can receive in excess of 100 points but not more
  than 125 points.
• The maximum points and maximum amount of your
  PBCP is 125.

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PBCP

• Issues 
• Youre Responsible - Should issues arise that
  affect your ability to accomplish your
  objectives, it is your responsibility to meet and
  discuss these with your supervisor. They will
  determine what steps or adjustments to the
  objective are necessary. If this is determined,
  a revision will be made to the Quarterly
  Performance Score Card.
• Lastly, in order to be eligible for a quarterly
  bonus, you must be employed by COMPANY on the day
  following the end of the quarter.

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PBCP

• Conclusion
• Our objective to reward employees who contribute
  to the growth and success of COMPANY.
• The PBCP plan is designed to motivate and
  compensate you based on your specific
  contributions to COMPANYs overall success.
• This plan allows you to be in control over this
  portion of your compensation.
•  
• If you have any questions regarding the PBCP
  plan, please speak to your supervisor or Human
  Resources.

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Employee Communication Piece
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Supervisors Guide (partial)
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• Contact AchieveOne for help with your next
  compensation project
• 925-803-1080