In essence, the purpose of compensation is to recruit precisely the right employee to the right position at the right time, to foster their loyalty, and to motivate them in the interests of the company's goals. All the same, it is important to keep payroll costs within a competitive and flexible framework.
Many companies have now introduced a clear compensation strategy and principles to ensure that compensation matches the corporate strategy and that, in turn, it remains in line with the underlying HR strategy.
Besides ownership and corporate structure, the increasingly international alignment of companies and the associated cultural diversities, also the differences in the individual (HR) markets, are now important factors.
Furthermore, the compensation paid to executives must trigger behavioral incentives, control risks, secure competitiveness, and introduce flexibility to cost structures. It must be...
- inferred from the strategy, i.e. linked to the correct control parameters, performance indicators, and standards
- aligned with sustainable shareholder value and the actual corporate values as a leadership instrument within management conduct
- suitable to create incentives to take desired corporate risks, while still introducing consequences to sanction misconduct
- enable recruitment, retention and reward of key performers and talents
- able to ensure cost flexibility through the introduction of appropriate, variable compensation components that depend on performance and success
- in a position to communicate a sense of internal and external 'compensation fairness' to relevant employees.
Companies are finding it more complex than ever before to resolve these issues due to dynamic regulatory frameworks, constantly shifting company strategies and realities, and not least the changes in employee preferences.
The right concept and scaling of compensation systems used as underlying factors to ensure that specialists and executives produce strategically relevant results and demonstrate desired conduct are most certainly challenging. Therefore, when used correctly, compensation is among the most effective leadership instruments.
We help companies develop compensation concepts that are based on the central, visionary principle of sustained corporate success, risk-conscious company management, and value-based leadership.
Our consultancy portfolio includes all constituent elements specific to compensation, even the implementation and communication of the developed solutions, and operative support of HR positions in the field.
The services include:
- Basic compensation
- Bonus systems
- Long-term incentives (LTI)
- Incentive systems and benefits
- Variable compensation systems
- Development of grading systems
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