Reward system development

Developing a compensation policy

This is relevant for you if:

The personnel compensation system is not formalized or does not address all significant elements of compensations and benefits.
Sources of market information do not meet the company's requirements.

The service includes:

• Identification of the ratio between the fixed and variable part of compensation;
• Identification of the terms and procedure for payment of the variable part;
• Development of a policy for market positioning of compensation;
• Selection of sources of labor market information;
• Establishment of the procedure for salary review;
• Development of a benefits policy.

Alignment of the personal compensation system with the company's goals

This is relevant for you if:

You want to implement a compensation system that correlates the amount of payments to the performance of the company (employee's division) or to adjust the existing system used for such correlation.

The service includes:

• Formalization of strategic goals of the company and its divisions;
• Development of key performance indicators;
• Cascading of performance indicators;
• Correlation of variable compensation to performance indicators.

Identification of compensation system entities

This is relevant for you if:

You need to develop individual salary structures for selected personnel categories (e.g. for division managers) or job families (e.g. for sales personnel).
You need to develop an internal policy to determine the size of a category-dependent personnel compensation package.

The service includes:

• Identification of job categories, i.e. job groups, with an individual compensation policy developed for each one;
• Identification of job families i.e. job groups with similar functions; their compensation policy should differ on basis of the company's strategy or labor market conditions;
• Comparative analysis of jobs i.e. comparison of jobs in terms of the amount of their functions, job requirements, job's role within the company etc.;
• Grading i.e. ranging of job groups created on basis of comparative analysis of jobs.

Analysis of the company's organizational culture and business practices for applicability of the performance indicators used

This is relevant for you if:

You notice that any compensation elements or performance indicators do not work properly.

The service includes:

• Questionnaire surveys/interviews with division managers and key employees;
• Correlation, on basis of questionnaire surveys, of the used performance indicators to actual operations of the company and its divisions;
• Correlation, on basis of questionnaire surveys, of the used performance indicators to the attitudes dictated by the company's organizational structure.

Modeling of the compensation system's impact on the company's budgetary indicators. Development of the compensation budgeting system

This is relevant for you if:

You want to change the compensation system, but you want to ensure that you can afford it.
You are not satisfied with the existing budgeting process.

The service includes:

• Development of a financial model that builds on the database covering the most recent reporting year;
• Assessment of impact of the designed compensation system changes on the budgetary indicators;
• Analysis for the model's resistance to changes in individual budgetary indicators;
• Assignment of roles in the budgetary process;
• Procedure and terms for delivery of information during budget preparation;
• Procedure and terms for delivery of information during budget utilization follow-up.

Analysis of the efficiency and motivating effect of the existing compensation system

This is relevant for you if:

You think that the compensation system works properly, but you are not sure that your employees share your attitude.

The service includes:

• Questionnaire surveys/interviews with the company's employees;
• Assessment, on basis of questionnaire surveys, of compliance of the system's performance deliverables with the goals identified during its development.

Development of long-term personnel compensation programs

This is relevant for you if:

You want the personnel compensation system to align their personal prospects with your company's operations over a term exceeding a year.

The service includes:

• Development of long-term bonus programs i.e. bonus programs based on performance over a period exceeding a year;
• Use of deferred bonuses i.e. carry-over of an annual bonus to subsequent years;
• Development of share incentive programs;
• Development of options programs i.e. programs offering compensation by way of the right to purchase shares at a fixed price in the future;
• Development of absolute (i.e. correlated to the company's operations) and relative (i.e. correlated to external factors) performance indicators for long-term compensation programs.

Compensation for top executives and boards of directors

This is relevant for you if:

You want the market's best professional managers to work for you and to precisely align their goals with the goals of the company's shareholders.

The service includes:

• Interviews with top executives and managers of key divisions;
• Strategic sessions with company managers and/or owners;
• Identification and formalization, on basis of interviews and strategic session, of the company's strategic goals and objectives of its managers;
• Comparative analysis of the compensation system for top executives and board of directors with a group of comparable companies (benchmarking);
• Aligning of compensation principles for top executives;
• Development of compensation programs;
• Alignment of the compensation system for the Board of Directors (American vs continental);
• Development of a compensation program for the Board of Directors

Development of internal labor compensation regulatory acts

This is relevant for you if:

You want all payments made to employees by the company to strictly comply with labor, tax and civil laws.

The service includes:

• Preparation of Regulations on  all types of compensation;
• Preparation of amendments to labor and collective agreements;
• Audits of compliance of internal regulatory documents with civil, labor and tax laws;
• Optimization of tax risks when implementing compensation systems.

Development of a program to inform employees on changes in the compensation system

This is relevant for you if:

You have made any significant changes to the compensation system.
You notice that your employees have little or no understanding of what they are paid for.

The service includes:

• Preparation of an action plan to:
• Inform your employees on changes in the compensation system;
• Communicate of the major goals and principles of change to your employees;
• Answer questions relating to maintenance of the system;
• Address objections received;
• Alleviate tension caused by implementation of the new system.

Basic trends of the action plan are as follows:

• Presentations to line managers including presentations involving the company's management;
• Dissemination of information notices;
• Collection of feedback and objections, responding to those via publicly accessible employee information channels;
• Working with the trade union;
• Handling informal information sources (rumors, gossips).