There are many questions that need to be addressed before beginning
the process of analyzing and implementing a compensation strategy
and structure. Starting with a compensation
philosophy (paying above, below or at market), and local and
national or international pay structure. Below is an example of
what is needed to create, analyze and implement a comprehensive
compensation structure.
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| Compensation Structure Analysis: Including
Local, State and Federal Law |
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| o Identify all employee compensation (Corporate
and Nationally) (10-12 Hours) |
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- Annual salaries |
- Bonuses |
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- Incentives |
- Commissions |
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- Stock |
- Other forms of pay |
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| o Interview department teams and select employees
(Corporate) (50-60 Hours) |
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To determine: |
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- True job description |
- Skill |
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- Effort |
- True responsibility |
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- True working conditions |
- True job title |
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| o Analysis of all employee compensation (Corporate
and Nationally) (60-80 Hours) |
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Analyze current compensation philosophy |
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Analyze job descriptions including: |
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- Skill |
- Effort |
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- Responsibility |
- Working conditions |
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- Education |
- Experience |
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Identify discrepancies within the current plan
(Corporate) |
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Identify like positions within the company (Corporate)
(CRA) |
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Comparison within like positions (Nationally)
(CRA) |
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Identify discrepancies within like positions
(Nationally) (CRA) |
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Identify discrepancies with State and Federal
mandates (EEO - FLSA - DLSA - ADA - EPA - ADEA) |
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| o Analysis of Vertical Market (Corporate and Nationally)
(40-50 Hours) |
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Identify competition compensation plan including: |
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- Competition |
- Competition |
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- Competition |
- Others |
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Comparison of like positions within the vertical
market (Corporate) |
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Comparison of like positions within the vertical
market (Nationally) |
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| o Travel for above analysis (Corporate and Nationally)
(50-55 Hours - Per location - if applicable) |
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Research select site to determine: |
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- Vertical market |
- Market location |
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- Size and productivity |
- Comparison within local market |
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Interview select site employees to determine: |
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- True job description |
- Skill |
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- Effort |
- True responsibility |
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- True working conditions |
- True job title |
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| Areas of Compensation Analysis Planning:
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| o Design of proposed Compensation Plan (Corporate)
(15-20 Hours) |
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Create compensation matrix for all employees |
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Create bonus and incentive plan for all employees
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Create commission plan for applicable employees |
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| o Design of purposed Compensation Plan (Nationally)
(15-20 Hours) |
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Create compensation matrix for all site employees
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Create adjusting percentage scale for variables
by state |
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Create bonus plan for applicable employees |
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Create bonus adjusting percentage scale for variables
by state |
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Create incentive plans for productivity including: |
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- Incentives for top producing sites |
- Incentives for top producing employees |
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- Other incentives |
- Percentage scale variables by state |
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| Areas of Compensation Analysis (Other):
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Meet with Client and others regarding project
(5-10 Hours) |
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Meet with other colleagues regarding market research
(2-6 Hours) |
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Obtain State and Federal mandates for compensation
nationally (2-4 Hours) |
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Unforeseen issues (16-20 Hours) |
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Create proposal (2-4 Hours) |
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| List of Collect: |
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All Compensation information for all employees
(Current and historical) |
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Job descriptions for all positions (filled or
not) |
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All locations and list of it's employees, titles,
length of tenure, education and experience |
