Compensation is not a silver bullet and implemented incorrectly, can drive the wrong behaviors which ultimately impacts profitability. The right compensation structure including base pay, total package, production incentives, bonus and deferred compensation will help attract and retain the right talent while aligning everyone around common goals.
Before implementing any changes to your compensation programs ensure that all other aspects of your talent management process are working effectively including:
Building upon this foundation you should review the various types of compensation to see if they could improve performance.
Each of these has pros and cons and there is no “perfect” program. Compensation programs need to change and evolve as the business grows.
Leverage our experience and models to help design your compensation systems.