Alvarez & Marsal’s broad-based compensation consultants can help your organization with planning, designing and implementing a custom-made compensation plan for your broad workforce. Our services include:

Competitive Compensation Analysis

• Base salaries
• Target and actual annual incentive values
• Long-term incentive awards
• Pay ranges by position
• Job descriptions

Salary Structure Development

Optimizing your organization’s salary structure can help drive positive financial results through creating an engaged workforce. Benefits of a well-designed salary structure include employees with increased job satisfaction seeking internal advancement, effective communication of career path and associated rewards, and defensible pay programs that mitigate risk. 

A salary structure helps streamline your compensation decision process and can be used in lieu of “one off” compensation decisions. Slotting positions into equitable salary bands helps companies manage compensation decisions within the structure on a go-forward basis.

Global Compensation Management

In an increasingly mobile and international workplace, dealing with the complexity of payroll compliance in the face of changing regulations across jurisdictions can be difficult. A&M’s experts can chart a course to maintain or achieve payroll compliance. 

Multinational companies must also manage market compensation expectations in multiple regions around the world and can benefit from a partner with global expertise such as A&M.

Total Rewards Strategy and Design

Total reward strategies provide an avenue to combine compensation, benefits and professional growth opportunities that effectively motivate employees to meet goals aligned with the company’s overall business strategy. This is crucial to attract recruits and improve employee retention   and is essential to the professional development of the workforce.

Effective strategy and design of total rewards programs requires an organization-wide perspective that correctly assesses who should receive awards, the optimum program design and execution, and an evaluation of the success of the plan.

Compensation Administration and Outsourcing

Companies can benefit by outsourcing compensation administration, especially when there is a lack of internal expertise and knowledge to effectively structure pay and rewards programs. Similarly, when one or more members of a team leaves, organizations can be hard-pressed for resources. 

A&M’s compensation professionals have operational experience and can step in to provide immediate assistance while a long-term solution is identified. Our expertise with various payroll and service provider systems means that you will not have to worry about continuity gaps.

Incentive Plan Design

Businesses are most successful when people are happy with their employment and motivated to perform at a high level. Effective incentive plan design can help drive a company’s operational performance and overall business strategy.

Types of incentives can include: 

• Sales commission
• Annual performance bonuses
• Long-term incentives/equity awards
• Retention awards/employee recognition
• Incentive plan design should be customized to your unique company

FLSA Compliance

The Fair Labor Standards Act (FLSA) is the federal law regulating minimum wage, overtime pay eligibility, recordkeeping, and child labor standards, as well as exemptions from the law. Employers must be able to prove they are following applicable wage and hour laws by keeping detailed payroll records.

Compliance requires knowing who is covered under each part of the law, including how exempt and non-exempt employees are treated. Companies also face various state laws to comply with the stricter law, such as higher state-level minimum wage compared to the federal wage rate. A&M’s experts can help companies manage this process and avoid any problems with non-compliance.

Internal Pay-Equity Analysis

Internal pay-equity analysis is an evaluation of pay rates with the organization to determine differences relative to race, gender, age, and other categories. By understanding pay equity in your organization, you can improve pay opportunities to attract and retain talent and mitigate risk against discrimination litigation. 

A&M has the tools and expertise to dig down into a company’s pay structure and provide guidance to help promote pay equity and reduce a company’s exposure.

Frequently Asked Questions About Broad-Based Compensation

Below are some of the most frequently asked questions about broad-based compensation and how a well-designed broad-based compensation plan can strengthen your organization.

What is Broad-Based Compensation?

Broad-based compensation focuses on employees below the executive rank and moves the discussion of “pay” from merely being focused on wages to also include other forms of compensation and benefits , including performance-based incentives to help increase workforce effectiveness. A key component is benchmarking a company’s compensation and benefits with similar peers to ensure the total pay package is competitive.

Which Companies Would Benefit from a Broad-Based Compensation Structure?

Public, private, and nonprofit organizations can benefit by developing compensation programs to motivate employees and attract recruits. Often, companies going through a lifecycle change, such as an acquisition, divestiture, or restructuring, can capitalize on this event by optimizing their compensation programs to fit within their unique circumstances.

Some companies who face pay equity questions, either internally or externally, may be under pressure to manage their compensation more equitably. A&M’s experts can assist in developing fair and competitive pay structures.

How Can A&M Add Value to Your Compensation Strategy?

A&M’s experts bring a wealth of technical and operational expertise designing compensation plans to meet each company’s unique needs.

Using the latest salary surveys, company data, and analytic models, A&M can evaluate whether the company is paying competitively within their industry and identify improvements that can more effectively motivate and attract employees.

What is the Best Way to Communicate a New Broad-Based Compensation Plan to Current Employees?

Employee conversations about compensation is crucial to building trust over time. They can improve motivation, employee appreciation, and an understanding of company goals and strategies. For those reasons, it is important that your company develops a communication strategy that is aligned with leadership and clear about what is expected from employees.

Still, some managers may feel uncomfortable having such discussions for several reasons. A trusted advisor can help build the communications strategy and training programs to roll out plans with confidence.

Why should you use A&M’s Broad-Based Compensation solution?

Our expertise in assessing current compensation plans and designing new programs ensures companies can have the utmost confidence in the competitiveness, and value-driven nature of their plans. 

• Experience: Our team has years of experience setting up compensation programs and has worked with all types and sizes of organizations, including startup companies, privately-held companies, companies undergoing an IPO, publicly-traded companies, and nonprofit organizations
• Data-driven results: We use the latest market surveys, company data and analytical techniques to determine if the company is paying competitively within their industry. This aids the company in knowing if they are providing compensation that will help motivate and attract employees

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