Situation:
A nationally recognized employee benefits consulting firm was concerned about its overall compensation and performance management systems. As a partnership, long-term compensation and retention of key non-partner personnel were becoming critical to the long-term survival of the company. In addition, employee feedback indicated a general dissatisfaction with the connection between individual performance and base pay as well as incentive payments at all levels.
Process
A consulting team from D.G. McDermott Associates conducted a series of interviews of a cross section of partners and managers. Also, a series of employee focus groups was held to solicit feedback from support staff and operations personnel. Simultaneously, D.G. McDermott Associates analyzed the performance appraisal processes and pay history with its correlation to performance ratings and conducted a bench marking study of pay levels within the consulting industry.
Solution
D.G. McDermott Associates' recommendations included involving key managers in the process as it worked through the various phases of the assignment. Consequently, a series of periodic meetings were held in which D.G. McDermott Associates presented its findings and worked with principals in the firm to formulate and implement the following recommendations:
- A complete restructuring of the rewards program
- A revised performance management system
- Incentive pay that more closely tracked individual performance and financial performance of the firm
- Specific provisions for training and development>
Outcome
D.G. McDermott Associates' recommendations were adopted by the partnership, supported by the consulting managers and readily accepted by the employees since all were involved in the process.
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