Align Compensation

 

 

 
Team Meeting

"My belief is firm in a law of compensation. The true rewards are ever in proportion to the labour and sacrifices made"

-Nikola Tesla

                                                                 

                                                                     

 

What you can expect from this best practice:

 

  • Adopt a professional approach to consistently managing compensation on your team

  • Provide a predictable and professional process for continued compensation advancement, which attracts and keeps great employees

  • Use a Compensation Summary to convey a range of elements included in the compensation package for each of your individual team members

  • Implement a compensation approach which rewards tenure, performance, achievement, contributions to the business, and continued professional growth – providing motivation and inspiration

  • Create a culture of continued growth and excellence

                                                                     

 

Understand the 4 Pillars of Compensation

  1. Review Compensation: The Big Picture to get an understanding of the many components that feed into creating an effective compensation package:

    • Fixed Income Pay

    • Variable Income Pay

    • Benefits - Time Off

    • Benefits – Family Security

  2. Review 1 Fixed Compensation – Base Pay Salary to understand the components that feed into determining base pay as part of overall compensation package.

    • Begin to map these out using the Compensation Worksheet.

    • Write all of your ideas down and then methodically determine what is already in place and document it accordingly.  Identify any items that may require more research or information to implement and follow up accordingly.

    • This may involve online research and/or firm information related to salary ranges and allowances for increases related to education, tenure, etc.

  3. Review 2 Variable Compensation – Profit-Sharing, Bonuses & Incentives to understand the components that feed into determining appropriate variable pay as part of the overall compensation package.

    • Begin to map these out using the Compensation Worksheet.

    • Write all of your ideas down and then methodically determine what is already in place.  Document it accordingly.  Identify any items that may require more research or information to implement and follow up.

    • This may involve research related to existing incentives, creating new incentive/bonus structures, as well as talking to other successful advisors with teams about this to see what they are doing.

  4. Review 3 Time Off – Vacation, Statutory Holidays & Sick Days to understand the components that may comprise Time Off as part of the overall compensation package.

    • Begin to map these out using the Compensation Worksheet.

    • Write all of your ideas down and then methodically determine what is already in place.  Document it accordingly.  Identify any items that may require more research or information to implement and follow up.

    • This may involve getting clarity on what is required and what is allowable in terms of paid time off and unpaid time off, as well as options related to hours and flexibility.

  5. Review 4 Security & Extras – Healthcare, Life & Disability, & Other Extras to understand the components that may comprise the other important benefits as part of the overall compensation package.

    • Begin to map these out using the Compensation Worksheet.

    • Write all of your ideas down and then methodically determine what is already in place.  Document it accordingly.  Identify any items that may require more research or information to implement and follow up.

    • This may involve getting clarity on what is available in terms of various benefits and costs associated with providing them to your team.  You may also want to speak with other elite advisory teams about some of their best practices related to Extras in terms of benefits.

Compensation Alignment

  1. Use the Compensation Package Summary as a template to create an annual deliverable for each of your team members – it clearly outlines all aspects of their compensation package.

  2. Carefully review each Compensation Package Summary for accuracy and be sure to discuss with your HR Division to ensure all Labor Regulations & Laws are being adhered to.

  3. Set a time to meet with each of your team members individually to go over their Compensation Package Summary.

    • Review each component in detail.

    • Answer any questions.

    • Listen to what they are saying and how they are responding to get a better understanding of the key motivators for them.

  4. Update and discuss this annually with each team member at the Professional Growth Planning Session (refer to the previous best practice for more information on this).

                                                                     

 

These two videos are the same, but are offered in two different formats to accomodate our users. 

If you cannot access YouTube (the first video) click on Vimeo (the second video).

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