Your organization gains a powerful competitive advantage from a well designed compensation strategy, as part of an integrated approach to human resources. A poorly designed rewards program, on the other hand, can contribute to dissatisfied employees, excessive workforce turnover, and the inability to attract quality candidates.
At ICR, compensation strategy means taking an informed approach to rewarding employees relative to your competitors, in support of your business culture and objectives. We help our clients establish the purpose of each component in the compensation package (including base salary, short-term and long-term incentives, benefits, perks, and recognition programs) as well as how the total package should be positioned versus the market.
ICR’s proven approach to compensation strategy development includes the following steps, customized to each client’s unique requirements:
- Identify the companies, industries, and geographical areas in the competitive market.
- Conduct a full market analysis using company data or ICR surveys, to benchmark against industry average job salaries and benefits.
- Meet with executive management and HR to integrate compensation programs with business and HR strategies.
- Review market analysis results to determine how actual competitive position varies from desired position by each aspect of the compensation package, and on a “total compensation” basis.
- Determine whether employee relations and recruitment activity support indicated findings.
- Develop comprehensive plans for addressing areas of concern - such as functional spend programs, incentive plan design, program structure, or stock option awards.
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