Some HR professionals will tell you that effective employee management begins at the time you and a prospective new hire agree on a starting salary. Further down the line, long-term employees approaching retirement may be looking for a way to ease out of their positions while at the same time performing necessary functions and receiving full or partial pay. Regardless of the situation, salary consultants offer companies a diverse range of services related to starting salaries, retirement plans and effective pay policies. Here's an overview of key terms that provide insight on how salary consultants can benefit your business.

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Percentiles

Salary consultants depend on percentiles to help them find a predetermined point on a scale that ranges from very low to very high numbers. The percentile point must be calculated using circumstance-specific variables.

I recommend: Read "How are percentiles defined?" at Abbott, Langer Association Surveys. Learn methods for computing percentiles, what kinds of percentiles salary consultants depend on and how these calculations are used to compute percentile salary amounts.

Long-term incentive plans

Long-term incentive plans are systems designed to reward employees for their continued performance and support of the company. It is more common for salary consultants to compute long- term incentive plans for senior level management and executives.

I recommend: Compensation Resources tells you how to develop a long-term incentive plan based on stock or cash. It also explains the purpose behind these plans.

Phased retirements

When companies create phased retirement plans, they allow certain employees to scale back on hours, with or without adjustments to their pay.

I recommend: At Deloitte, you'll learn the pros and cons of using phased retirement plans. Find out whether these plans will offer solutions for your company and whether to adopt a broad policy or design the plans on an individual basis.

Wage surveys

Companies perform wage surveys to gather compensation data related to benefits plans and new-hire salaries, as well as for other reasons.

I recommend: Access the wage surveys page at Palmer and Associates for a complete list of the data on which wage surveys are based. You'll also learn why many companies depend on wage surveys to rank their positions in a given industry.

Retirement risk solutions

When companies consider retirement risk solutions, they are grappling with the existing market economy and how much of a financial burden the retirement plans they offer to their employees will be.

I recommend: At Towers Perrin, you'll learn how major companies use risk expertise skills to analyze pension plans. Read how salary consultants manage retirement risks and finalize business transactions that are based on a company's current financial performance.

Salary negotiation techniques

Salary consultants depend on well-defined salary negotiation techniques to arrive at compensation that fits an employee's skills while at the same time measures the value of his or her experience.

I recommend: Read a description of salary negotiation techniques at Gibson Consultants and find out about a suggested approach to making a salary offer. Find out how bottom-line figures and acceptance conditions come into play when bargaining over compensation.

Salary consultancies are skilled in developing effective compensation plans, incentive plans and performance plans that reward employees. Successful salary experts strategically align employee compensation with a company's business plan and carefully balance market demands with compensation benefits.

With their vast resources, salary consultants offer experience, knowledge and skills to design, implement and manage successful industry salary consulting solutions for your business. A salary compensation consultant enhances your company's human resources capabilities without the need to invest in additional internal staff.

Before beginning your search for salary advisors, it is important to define your consulting needs. Clearly identify the goal of your salary consultancy service, including services needed, time frame and budget. This information will help you select the best salary specialists to meet your specific human resource goals.

When selecting salary compensation experts, research each consulting company and evaluate the following:

1. What kind of experience do the salary consulting companies offer to successfully manage salary compensation in your industry?

2. What services do the industry salary consultants provide to enhance your human resource capabilities?

3. How much should my business invest in salary consulting services?

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Hire salary consultants that specialize in compensation services for your industry

Select human resource consulting firms with seasoned professionals who have extensive experience in your business or industry. Ask to see a list of past and present clients, and request references.

I recommend: HR Dynamics, Inc. offers compensation analysis services for companies in industrial and services industries, including business services, health care, human services, retailing, technology, financial services, cultural arts, community services and social services. Fox Lawson & Associates, LLC provides salary consulting services to a variety of industries, including finance, manufacturing, high tech, software development, food, retail, wholesale trade, communications, transportation, service, not-for-profit and education. Get current salary and benefits survey reports for jobs in technology, marketing, accounting, engineering, human resources, consulting, manufacturing, nonprofit, legal and health care fields at Abbott, Langer Association Surveys.

Choose salary consulting firms with proven compensation planning skills

Review the consulting work provided by each salary compensation consulting firm. Evaluate the firm's experience, qualifications and request successful examples of the specific capabilities you need, including salary and benefit surveys, performance appraisal systems and incentive plans.

I recommend: Compensation Resources, Inc. provides a comprehensive menu of salary consulting services, including salary administration, salary structure development, staff incentive compensation plans, sales compensation, customized market analysis and custom compensation surveys. Deloitte Development, LLC features online case studies addressing compensation strategies. Palmer and Associates, Inc. offers expertise in designing compensation programs and administering wage surveys.

Select salary experts that meet your budget

Many salary consulting companies operate on a retainer with a minimum time commitment. Several utilize an hourly fee or project basis structure. Your salary consultancy cost will depend upon the scope of your services.

I recommend: Request a quote for salary compensation consulting services at Mercer, LLC. Western Management Group offers customized compensation reports on a subscription basis for two weeks, three months or one year.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some salary consulting firms offer standard salary compensation surveys based on specific industries. While these surveys are informative, they do not always take into account the market conditions of specific geographic areas. Request a customized salary compensation survey to ensure strategic compensation solutions for your business.

Salary consulting firms help businesses design compensation plans that not only fit into the company's budget, but also are also fair, competitive and motivate employees to perform their best. Salary consultants must keep in mind a company's financial resources, its business plan and what other companies the same size or in the same industry pay their employees. Some consultants work for human resource consulting firms, while others are self-employed. In addition to learning the basics of salary consultancy, they must also learn how to find and work with clients.

Salary consultants education and training resources include:

1. Online training courses in compensation
2. Training and certification as a consultant
3. Industry publications for consultants and salary experts
   

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Take online training in salary consulting services

To start with, you'll need to understand how compensation plans work, including the most common kinds and how to create and manage them. Salary specialists don't just determine a monthly or yearly amount to pay employees; today, salary is only part of a company's compensation package. Salary compensation experts must understand what else goes into these plans, including everything from healthcare benefits to incentive and performance bonuses. You can get this information through online courses.

I recommend: HRCertification.com offers a compensation training and certification program that covers everything from the kinds of compensation plans to communicating and evaluating your plan. The course is sold as an annual subscription that includes not only the course, but also updates, a certificate and four hours of re-certification credits. HRTrainingCenter.com offers several compensation training courses and webinars, including state-specific compensation training, executive compensation, compensation planning, and a compensation training and certification program.

Receive consultant training or certification as preparation for being salary compensation consultant

While many consultants work at salary consulting firms, many are self-employed. In addition to mastering the compensation aspect of their job, they also need to learn the many tasks involved in being an independent contractor. Training to be a consultant can help them strengthen their skills in everything from finding clients to billing.

I recommend: The International Guild of Professional Consultants and Coaches offers seminars and certification courses for consultants. Fieldstone Alliance trains consultants to work with nonprofits. To learn how to win more clients, attend an "Odd Couple" seminar for consultants and coaches, led by Alan Weiss and Patricia Fripp. These seminars use role-playing to help consultants strengthen their client relations skills.

Read about salary compensation consulting in industry publications

Industry magazines, both for consulting and for salary and compensation, can help you learn the latest trends and methods in your field. These publications are ideal both for beginning consultants and those looking for ongoing education.

I recommend: Benefits & Compensation Solutions, an online magazine, covers topics like salary trends for telecommuters, compensation packages that motivate employees, and compensating low-income workers. The magazine addresses compensation and benefits for everyone from the CEO to staff members. Consulting Magazine, published bimonthly, offers general and industry-specific information for consultants.