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Broad-Based Compensation and Rewards
Organizations are constantly challenged to balance the objectives of employee pay: competitiveness, motivation, equity and cost. Many organizations unintentionally get the objectives out of balance, creating an environment of entitlement where the link between performance and pay is broken.
In today's economic environment of limited compensation budgets, organizations have the opportunity to eliminate this culture of entitlement and instead establish a culture of accountability with a clear line of sight between performance and rewards. A pay for performance culture allows organizations to differentiate pay across different levels of performance while retaining their top talent.
Sibson Consulting helps organizations develop effective pay for performance programs that address the specific compensation needs of organizations and their employees. We develop compensation strategies that closely align with an organization's strategic objectives, and we design broad-based compensation plans that reflect an organization's specific culture, values, operating style and resources. We have many years of experience designing client-tested compensation programs – from base pay to incentives – that employees find easy to understand and both HR and managers and supervisors find easy to administer.
Rather than coming in with a pre-established solution, we collaborate with our clients to understand their current business objectives, compensation strategy and compensation architecture. After assessing to what degree the current compensation system drives the desired behaviors, we partner with the client design team to create a customized pay for performance architecture that helps align pay programs with the strategic objectives and manage the performance and productivity of employees.
Pay for Performance Architecture
Sibson helps organizations understand the key design considerations in developing an effective pay for performance architecture and we work with these organizations to identify an approach that best achieves their objectives given their resources. An effective pay for performance architecture establishes the framework for job structures and evaluation systems, salary structures, base pay delivery, and incentive plan design. Designing and implementing a pay for performance architecture starts with a compensation strategy that is clear, simple, easy to communicate, in alignment with business desires, and addresses the prominence of internal value against market competitiveness. We help organizations design a pay for performance architecture that helps foster a culture where employees are focused, productive, motivated, and appropriately compensated – through both merit increases and incentive compensation if applicable – given their individual performance and the overall business results.
Common issues:
- How do we keep the job structure and evaluation system aligned with the business objectives and compensation strategy?
- How do we strike a balance between enforcing the salary structure and allowing for individual differentiation?
- How do we ensure our program is administered in a consistent manner?
- What is your desire for differentiated pay opportunities?