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Custom Compensation Design

We review existing compensation structures to determine the best alternatives for each company's situation. In many cases, these are companies with no structures that have grown to the point where internal equity is now a strong issue and difficult to control without some mechanism. In other cases, the structures are simply too complicated or too much of an administrative burden for the compensation staff, especially where complex point factor systems exist.

Types of Structures

  • Traditional (standard min/max and midpoint spread)
  • Tulip (increasing spread as you increase the grade)
  • Broadband (with and without zones)
  • Market Pricing (using the 25th, 50th and 75th as control points)

What to Avoid

Avoid using point factor systems with more than five compensable factors to evaluate and slot a position. Realistically, you do not get value added accuracy beyond five factors. This is due to the fact that each grade has a range of points, and those ranges are generally assigned (bucketed) based on a ranking of all positions during the initial stages of structure development.

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Other Considerations

~~ Number and geographic ~~location of the facilities

~~ Type of system currently in ~~place

~~ Reasons for success or failure ~~of the current system

~~ Impact as a result of ~~mergers/acquisitions

~~ Compensation staff support

~~ HRIS system