Straight-Forward Compensation Advice for an Industrial Equipment Manufacturer
Pennsylvania-based Eriez designs and manufactures separation, metal detection, and material handling equipment for processing industries. Company president & CEO Lukas Guenthardt relies on McDermott Associates’ founder Don McDermott for guidance on matters related to total compensation, including benefits and bonus plans.
Don had helped the Eriez Board design the company’s executive compensation plan. When it came time to implement the plan, it was natural for Lukas to turn to Don for advice. “Don’s easy to work with and a good market reference,” he says. “He’s very down-to-earth in the advice he gives. I trust that Don knows what he’s saying. He researches what he’s saying. He doesn’t take his numbers out of thin air. So, I trust him 100% in that respect.”
Lukas see a big need for hiring and retaining engineers, especially for industrial equipment companies like Eriez as well as others that rely heavily on engineering talent. “Engineers are being sought after right now. You can’t find them,” says Lukas. “Compensation is one part of the equation for attracting them. But it’s not just the level of compensation, it’s everything that goes with it, the whole work environment. That’s how you can attract engineers.”
Don’s recommendations have enabled Eriez to build compensation packages and long-term incentives to attract the engineering talent they need. In addition, Don assisted Lukas on a deeper level. “I spent my whole career in industrial equipment manufacturing, and engineers, generally they shy away from areas like compensation,” says Lukas. “Don has a gift for making people feel comfortable talking about it. He’s a straightforward guy and offers usable advice. This works well with small and engineering-heavy companies, because it’s not about what you look like or wear, it’s what you know.”
Learn more about McDermott Associates compensation consulting services.