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Over 80% (and in some sectors 100%) of the companies that have been participating to our compensation surveys provide some form of variable compensation program (bonus or other) for at least a portion of their employees. The main purpose of these variable programs is to foster employee commitment and reward good results. The most common variable programs are those designed for management and for the sales forces.
Many of these variable programs are not highly successful. Some surveys indicate a 60% degree of satisfaction from these variable compensation programs. Efficient programs are the result of a thoughtful process taking into account company characteristics, market practices and strong compensation principles.
We help companies analyze their appropriateness. If need be, we assist them in the development and communication of incentive compensation programs for all employees or for a specific group.
Sales Force Incentives
Until recently, most of these programs emphasized sales volume. Although sales volume is still very important, other factors have been added to many sales compensation arrangements. Today, compensation programs are more and more flexible, as they must adapt to unavoidable changes of which there are many in marketing strategies, products or services, and customers.
Executive Compensation
Executive global compensation must be competitive. Adding to an appropriate base salary and special benefits, it is important to offer a considerable gain opportunity based on results. We can help you develop annual, medium and long term profit-sharing programs based on company strategies and particular context. |
