COMPENSATION, BENEFITS, & TITLING
How to change labor from a line on the budget, to a strategic tool used to manage your business.
Most business owners do not have a good structure to their pay, or the structure is overly rigid and uniform, leaving little room for flexibility and strategy.
Compensation is tricky, it's not only a huge line on your total P&L, but it's also one of the most important factors to your employees, as it has a direct connection to their motivations and work product.
We help business owners understand what they can do to maximize their compensation efforts to more align with their employees, while also providing structure and efficiencies to the budget.
Job titles are a description of their function
Leveling should exist WITHIN each title
Award new titles as roles & responsibilities change
Reward benefits as performance and tenure rise
Create longevity within your employees through consistent and meaningful benefits
Introduce perks as short-term rewards and achievements
Use the 9-box method to understand where your employees are, leverage this data for promotions and pay increases
Note: Each business needs a different spread of employees within the 9-Box
HOW TO CALCULATE ALL IN COMPENSATION
Understand the various types of compensation and when to use them appropriately.
Figure out when to convert employees from hourly, to salary.
Figure out when it's appropriate to deliver bonuses and other rewards.
Understand your total benefits cost per employee.
Figure out the total cost to convert an employee to salary.
Evaluate if you're maximizing your benefit offerings.
Add in your operating expenses that are required to maintain your workforce.
Create a version that has both concrete costs (utilities, snacks, etc.) and one version with estimated soft costs (management training time, recruiting costs etc.)
Need help building out your compensation strategy? Schedule a call with us today to get started.