Filed in: Total Rewards
Restructure Compensation to Support Anticipated GrowthA fast-growing, privately held manufacturer of building materials needed to establish a formal compensation structure to better support its rapid growth and help it transition to a pay-for-performance company philosophy.
Design of Comprehensive Compensation StructureDuring this engagement, The Chatfield Group teamed with management to restructure roles and reporting relationships. We also wrote job descriptions for every position and market-priced all jobs so they would fall within the company’s new pay structure and salary ranges.
The Chatfield Group worked with management to introduce a formal, performance management program that aligns pay with performance. As part of this program, we designed performance-based incentive plans for both management and sales personnel. We also implemented a 12-month training & communications program to facilitate the company’s transition to a pay-for-performance philosophy.
Align Incentive Plans for Management & Sales with Growth-Oriented BehaviorsThe sales and installation division of a Fortune 500 company needed to restructure its management and sales incentive plans in order to strengthen the link between pay and performance. The division operated out of 45 field offices across the US, each with separate sales, service, and installation functions. Incentive plans at these 45 field locations were hard to understand and calculate, making it difficult for plan participants to see how their individual activities were tied to potential rewards. What’s more, the plans largely ignored the importance of teamwork.
To address these multiple compensation issues, management needed incentive plans that would provide strong linkage between performance and rewards as well as drive desired business results.
Conduct Incentive Compensation Study to Provide Basis for Comp PlanThe Chatfield Group designed and implemented a comprehensive compensation study to provide the foundation for revising the company’s management and sales incentive compensation programs.
Over a six-month period, we brought together representatives from across the country to pinpoint problems in existing plans and to take part in revamping the company’s approach to compensation. We led cross-functional discussions to identify key individual and shared performance metrics as well metrics that were particularly relevant from a functional, regional, and corporate perspective. And we provided continual analysis and modeling of plan options to keep a sharp focus on the study’s primary objectives – simplicity, teamwork, and financial results.
Once the new management and sales incentive compensation programs were approved by senior management, The Chatfield Group created communications materials for regional management to use in rolling out the new plans to covered employees. We also developed a workbook to help employees calculate their individual rewards under multiple performance scenarios.
Develop HR Tools for Local ManagersA national retailing organization needed to develop a set of HR tools to help local managers deal more effectively with performance-related people issues.
Performance-Based Total Rewards ToolkitThe Chatfield Group developed a performance management framework to enable local managers of the national retailer to assess their reward and recognition options and implement cash bonus or incentive programs. The toolkit discusses two key aspects of performance management: first, aligning activities to ensure that goals are consistently and efficiently being met, and second, helping people develop their skills and capabilities and satisfy their own work-related needs while they are, at the same time, contributing to the health and profitability of the business.
The toolkit covers a wide range of topics – from understanding your employees and the importance of employee feedback to the motivational aspects of performance management. It provides sample job descriptions, interviewing techniques, performance reviews and performance improvement plans. It includes tools to keep employees focused on meeting goals and job expectations. And it outlines how developing SMART goals – i.e. ones that are Specific, Measurable, Attainable, Relevant and Timebound – can motivate employees to achieve high performance. Click here to learn more about SMART Goals.
In terms of retail-specific content, the toolkit covers performance management and the retail experience, achieving a competitive edge through customer service, and creating the optimum shopping experience for retail customers.