Compensation Effectiveness

How do you ensure that you maximise the return on your investment in compensation and that it is linked to the performance of the business both in the short, medium and long term?  How do you align people’s interests with those of the business?  How do you avoid unintended consequences?  How do you ensure people feel they are paid fairly?  How does your compensation plan like to your talent plan?  Your values?

In human capital intensive industries like Financial Services, ensuring payments made to staff reflect the performance of the business can have immediate impact on bottom-line results.  With increased investor, regulator and press scrutiny of compensation decisions, remuneration practices today present issues beyond ‘affordability’, ‘market competitiveness’ and ’employee satisfaction’.

At Leadenhall, we will help your organisation navigate these concerns by addressing the following issues:

  • Do the three key remuneration design considerations align with strategy and each other?
    • Funding, Allocation, Individual Distribution
  • Does your compensation approach align with the risks inherent in your business model?
    • Period of evaluation, volatility, amount of pay at risk, deferral period
  • Is there a transparent balance between managing ‘opportunity’ and managing ‘costs’
    • ‘S-curve’ model, investment phase of business
  • Is your programme understood by all staff?  Is there line of sight between employee actions and their compensation outcomes?
    • Link to business results, ability to impact individual pay, when and how discretion is applied, consequences for poor performance

At Leadenhall, we firmly believe that a consistent reward model will ensure our clients get the best return from every amount paid as compensation to staff, and we can help you understand how well it is working in your business today.