Outsourcing Compensation Design and Planning

Interview and compare fees of compensation planning outsourcing partners This might sound like a no-brainer, but you must evaluate the service provider you are thinking of using to do your compensation outsourcing. A formal written proposal is nice, but does the vendor understand your industry and your company? Is the vendor a good fit with your work practices and corporate culture and do they keep up with industry trends?

I recommend:  Although you would never choose compensation designers based solely on fees, you can compare outsourcing costs and services from multiple vendors without cost or obligation by using HR AllOptions to receive multiple quotes. Check out Compensation Resources, Inc. to view their different plans for executives and for sales staff.

Work alongside your compensation outsourcing partner The decision to outsource compensation is not the end of your participation in the process. You must be ready to roll up your sleeves and be a key player in the design of your compensation plan because you know your organization better than the vendor. The vendor might know how to put together a compensation program, but you have the final say on what actually goes into the plan.

I recommend:  Stanton Group and Hewitt Associates are industry leaders in outsourcing employee compensation and in human resource consulting services.

Purchase software solutions as your compensation designers If your budget doesn't include compensation services outsourcing, don't rule out software products. The software solutions on the market for employee compensation are highly customizable. Packages available are usually sold in modules for executive compensation, employee compensation and a sales force compensation so you can just select the ones that you will need.

I recommend:  NPKtools has an array of software solutions to aid in your executive compensation design. Varicent will enable you to manage and design flexible compensation models.