An effective reward system tangibly communicates an organization’s strategy, reinforces team execution, supports effective individual performance, and aligns the financial interests of the organization with its members. At SWA, we help clients:
- Understand market practices. Taking a marketing research approach to capturing rewards practices, we gather and consolidate information from recruiters, employees who formerly worked for competitors, published surveys, government reports, and outside companies. We do not limit our analysis to broad surveys produced by compensation consulting firms.
- Compare total value. Compensation is only one aspect of value provided to employees. We help clients compare the total value of their jobs, development opportunities, compensation and benefits, and company prestige with the total value provided by market competitors.
- Build a salary structure. An effective salary structure mirrors an organization’s natural career levels and steps within levels. We help clients provide salary ranges that are externally competitive and internally equitable.
- Calibrate entry pay. We help clients establish entry pay levels that attract target candidates. We advise differentiating pay for active and passive candidates – and for positions that are comparable internally but that vary in external value.
- Increase salaries systematically. We guide clients in increasing salaries based on two factors: a person’s position in salary range – and whether the person advances within a role or to a higher organizational level.
- Provide sensible variable pay. We connect variable pay to leaders’ strategies. Since most strategies emphasize teamwork and flexibility, we generally develop variable pay plans that define success at the business-unit level.
An ideal reward system reinforces but does not overshadow strategies, models of team performance, and role definitions.