(847) 236-1208

Archive for the ‘Compensation’ Category

Assessing the Impact of the Illinois Minimum Wage Change on Your Company

May 21, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Assessing the Impact of the Illinois Minimum Wage Change on Your Company

Effective Dates of the Changes The following table shows the effective dates of the changes to the Illinois minimum wage regulations: Under terms of the bill, the wage would rise $1.00 to $9.25 per hour on January 1, 2020, and another 75¢ on July 1, 2020. Every January 1st thereafter the wage would rise another $1.00 ...

Read More →

Sales Compensation Implications in Mergers and Acquisitions

April 23, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Sales Compensation Implications in Mergers and Acquisitions

Mergers and acquisitions (M&A) come with a lot of questions and uncertainty. Two different approaches to manage sales compensation in terms of design and execution, not to mention different CRMs and ERPs...yes, this won’t be easy. It’s a daunting task to think about how you’re going to figure out the best way to manage sales compensation going forward. Do you keep everything the same for the legacy ...

Read More →

Sales Compensation Program

March 12, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Sales Compensation Program

It’s important that a Sales Compensation Program has Plan Provisions to guide the administration of the Plan. The following are highlights of what those should be. Goals and Plan Principles It’s important to establish what the primary goals of the Plan are and the principles of the Plan as to how the Plan will be operationalized. For example: the Plan should be fair and equitable to the individuals covered ...

Read More →

How Do You Define a Compensation Philosophy?

January 22, 2019  |   Compensation,Uncategorized   |     |   Comments Off on How Do You Define a Compensation Philosophy?

Here are some elements your organization should include in its Compensation Philosophy. Describe what your philosophy is intended to do. For example: • Our Company designs its programs to challenge participants as well as reward them for superior performance for our Company and our stockholders. We believe that our compensation program must: - Align employees’ interests with those of our stockholders by including a portion of their total pay that ...

Read More →

Salary Planning for 2019

September 18, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Salary Planning for 2019

Salary increase budgets appear to be finally passing the 3% mark as companies compete for talent in an ever-tightening labor market, according to several salary surveys. Even so, the forecast still calls for relatively modest increases, as companies focus on the overall Employee Value Proposition. The projected total salary budget increase for 2019 is around 3.1% for Non-exempt employees and 3.2% for Exempt salaried and Officers/Executives. In 2018 ...

Read More →

Fairness and Equity in Rewards

August 21, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Fairness and Equity in Rewards

Organizations must ensure that rewards programs are rooted in principles of fairness in order to motivate and engage employees from different backgrounds and experiences. WorldatWork and Dow Scott, Ph.D., of Loyola University Chicago, gathered data about organizations’ perceptions of fair rewards and the tools rewards professionals use to create reward programs, policies and structures. An executive summary of their findings is as follows: • Promotional opportunities lead among employee ...

Read More →

Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

May 30, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

Gaining C-Suite buy-in to new sales compensation plans is one of the last steps before implementing new plans. However, we would first recommend to “begin with the end in mind,” as Stephen Covey recommends in 7 Habits of Highly Effective People. It’s not just the preparation for that final approval meeting that is important. The approach you take from the very beginning of the sales compensation project is ...

Read More →

The Role of the Sales Manager: What Role Does Your Sales Management Team Play in the Sales Compensation Arena?

April 24, 2018  |   Compensation,Uncategorized   |     |   Comments Off on The Role of the Sales Manager: What Role Does Your Sales Management Team Play in the Sales Compensation Arena?

• Are they a part of the sales incentive design team? • Do they take ownership of the sales incentive plan? • Do they own the communication of the sales incentive plan to their team? • Do they understand the pay mix and the associated base salary ranges for their direct reports? Most companies don’t answer yes to all of these questions. The question we ask is why not? Many sales ...

Read More →

Organizing Pay Practices in the New Year?

January 22, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Organizing Pay Practices in the New Year?

We have heard from some of our clients that have grown and changed significantly in recent times that although their business needs have changed, internal HR processes have not always kept pace. This mode of operation can often lead to disorganization and inefficiency, which typically results in inequity and low morale. Implementing a compensation structure can assist in providing an organization with the ability to administer its pay ...

Read More →

Sales Incentive Compensation – A Species of Its Own

November 20, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Sales Incentive Compensation – A Species of Its Own

In the world of compensation, sales compensation is a species of its own. While sales compensation and broad-based compensation employ some of the same principles, there are many differences. These differences are important to understand to effectively manage sales compensation, especially in relation to incentive compensation. The table below outlines some of the primary differences between sales incentive plans and corporate incentive plans.

Read More →