A Checklist for Fall Compensation Planning

Published: October 2018

 

At most companies, Fall is the start of compensation planning season. To help you prepare, Radford has developed a quick checklist for keeping your pay programs up to date.

1. Review your salary structure.

Do you still have room to grow? Rising headcounts, new office locations, and ever-climbing pay levels all put a tremendous level of stress on salary structures. In this market, assessing the stability and flexibility of salary programs is quickly becoming an annual exercise.

 

2. Check your benchmarks.

Is your targeted position in the market still competitive? Can you attract and retain the talent you need with relative ease? Have new competitors popped up in the last year? Is it time to review how you define the competitive landscape?

 

3. Audit your equity incentive plans.

Take stock, pun intended, of your current and expected burn rate as the year comes to close. Are you granting equity faster than you planned? Also, evaluate the holding power of vested and unvested equity awards for your key employees. Is it time to prepare for refresh grants?

 

4. Evaluate projected bonus payouts.

Keep a close eye on year-to-date and expected performance levels to begin modeling threshold, target and maximum payout levels across your organization. Also, start planning your communications strategies for multiple payout scenarios.

 

5. Gauge your merit budget.

Connect with hiring managers to get a jump start on identifying top performers and what it will take to keep your key employees engaged. Do you anticipate needing a larger or smaller budget relative to last year? What tradeoffs might you make?

 

If you have any questions about this checklist or related topics and want to speak with a member of our compensation consulting group, please write to consulting@radford.com


Related Articles

General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.



Talk to an Expert

Let us know how we can help and a member of our team will be in touch shortly.

Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.

If you do not wish to receive these communications, please check here: