structure review

Create a competitive advantage by
aligning objectives with compensation.

Is your compensation structure aligned with your objectives?

As the labor market, employee expectations, your business model and a myriad of 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 is not aligned, your employees' behavior may not be focused in the right direction.

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Compensation structure review

Consider who benefits

Organizations that have high turnover and/or difficulty recruiting and hiring qualified candidates

Organizations that 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

Organizations that have not reviewed their compensation structure in the past two to three years

Consider the benefits

Align compensation with organizational initiatives, compensation philosophy and industry standards

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

Help eliminate potential sources of employee dissatisfaction if wages and benefits vary widely without an explanation for the variances

Secure potential payroll savings if wages are found to be higher than market and need to be adjusted

How AGH's compensation structure review can help your organization

In a compensation structure review, you will meet with an AGH 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, and 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.

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

Frequently asked questions

How often should my organization be conducting a review?

In normal conditions, we recommend conducting a full compensation review every 3-5 years, more frequently if measures such as turnover, time-to-fill, etc., increases. In our current talent landscape, organizations may consider doing a limited-scope review every 6 months, especially for key positions or high-turnover positions.

How do you balance organizational needs/goals/values with market data?

We work to understand the organization’s strategy and goals that affect its workforce needs. We also take the organization’s values into consideration to make the best compensation recommendations specific to the organization. We have best practice guidelines that we follow as we evaluate market data, and then adjust our recommendations using organization-specific information.

Can I be flexible within a compensation structure to respond to changing market conditions?

Understanding your organization’s goals and needs allows you to design a structure and compensation policies that provide the needed flexibility in today’s market.

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Carrie Cox

Vice President
HR & Org. Development Services

Carrie has experience in a variety of human resource functions, including labor laws, compensation structures, employee classification, benefits administration, performance management and human resource best practices. She has served clients in a number of industries, including manufacturing, construction, banking, government, and not-for-profits. Carrie is a member of the national and local chapters of the Society of Human Resource Professionals (SHRM) and serves on the Wichita chapter board of directors.

She is a certified practitioner for the Myers-Briggs Type Indicator® and the Hay Group’s Emotional and Social Competency Inventory. Her additional certifications include Certified Professional Coach from the Academy of Creative Coaching, Professional in Human Resources (PHR) from the Human Resource Certification Institute, and SHRM-CP designated by the SHRM.