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Compensation Structure Development & Review


  • Aligns compensation with organizational initiatives, compensation philosophy and industry standards
  • Helps attract and retain talented workforce by offering competitive compensation package and structure
  • May maintain and increase employee satisfaction if compensation is perceived to be fair
  • Helps eliminate potential sources of employee dissatisfaction if wages and benefits vary widely without an understanding of why the variances
  • Potential payroll savings if wages are found to be higher than market and need to be adjusted

Who's most likely to benefit:

  • Organizations which have high turnover and/or difficulty recruiting and hiring qualified candidates
  • Organizations which have experienced rapid growth or large shifts in employee numbers and responsibilities due to layoffs, reorganization, mergers/acquisitions or successful growth strategies
  • Organizations moving into a new line of business or industry sector in which compensation expectations may be very different
  • Organizations seeking to drive cultural or organizational change through a link to compensation
    (NOTE: must work in conjunction with other resources, such as strong leadership, employee communication and training)
  • Organizations which have not reviewed their compensation structure in the past 2-3 years


As the labor market, employee expectations, your business model, and myriad other factors change over time, your organization's compensation structure should reflect those changes. Employees pay attention to the behaviors and outcomes for which they are rewarded – so if your compensation structure isn't appropriate, your employees' behaviors may not be focused in the right direction.

In a compensation structure review, you'll meet with an AGH Employer Solutions' advisor to outline your organization's goals in creating a compensation program. Then, with those goals in mind, our HR advisors can take a look at factors including salary rates and benefit packages, promotion and raise criteria, performance management system, types and amounts of any other compensation such as club memberships, training, expense accounts, automobile allowance, or other benefits provided. Profit-sharing, incentives, commissions, and deferred compensation could all be included in the compensation structure.

Then, with a complete picture of what's in place, our advisors compare the current compensation structure with the organization's goals in developing compensation and recommend changes which could more closely align compensation with organizational focus and goals.