Compensation Courses & Training
CompStrategy has developed a proposal to conduct a cycle of training activities in Strategic Compensation and Benefits Management in Company for professionals working in the Human Resources area of a company.
The objective of this activity is to unify the conceptual aspects of the Compensation and Benefits management strategy and its integration with the human resources strategy, as well as to improve the interpretation of information and the use of available management tools.
CompStrategy is specially prepared to offer this type of training, with senior consultants with extensive professional and teaching experience in knowledge transfer.
Unit I - Introduction to Compensation Management
- Workshop Objectives
- Advantages of professional Compensation Management
- Strategic Objectives in a Compensation and Benefits Policy
- Differentiated Strategy. Nine Box Approach
- Fundamental Principles of Compensation Management
- Economic variables impacting compensation and benefits management
- Holistic View of Compensation
- Tools to Manage and Evaluate the Competitiveness of the Model
- The Importance of Compensation Communications
- Budgeting Salary Cycles
- Elements and Calculation of Salary Costing
- Budgeting Headcount and Salary Cost
- Group exercise on "Integrated Compensation".
Unit II - Key Tools in Compensation Management
- Job Description, Evaluation and Classification Systems
- Job Evaluation by Factors and Points
- Salary Surveys:
- How are they done? - Processing, Statistics, Complimentary Devolution, Confidentiality
- Benchmarking: Identification of comparable positions in comparable organizations
- Information that surveys provide and its interpretation. Formats. Total Compensation surveys including valuation of benefits
- Development of Equitable and Competitive Salary Structures:
- Market Positioning Strategy
- Salary Bands: amplitude, quartiles, progression, overlapping
- Salary Adjustment Criteria (Performance, Market, Competencies, Combinations)
- Increment Cycles
- Salary Increase Cycles (general, merit, promotion, other)
- Practical Work: Salary Development and Salary Adjustment
- Practical Work: Development of a Salary Structure
Unit III - Variable Compensation, Bonuses and Incentives
- Strategic Objectives of Variable Compensation
- Variable Compensation in the Holistic View of Compensation
- Variable Compensation in the Holistic View of Compensation
- Perceived Value vs Fixed Compensation
- Reasons why an Incentive System might fail
- Market Information and its Interpretation for Variable Remuneration
- Basic Principles. Eligibility. Targets according to Organizational Level and Market
- Different Incentive Models. Measurement Levels (Company, Area, Individual). Triggers
- Rewarding "the What" and "the How"
- Minimum, Target and Maximum Incentive. Relationship between Payout and Achievement
- Incentive Cycles Agenda
- Cost Calculations. Relationship between Cost and Result for the Shareholder
- Incentive Systems
- Sales Force Incentive Systems
- Pay Curves. Accelerators
- Special Bonuses: Hiring/Welcome, Retention, Change of Control/Transaction, Golden Parachutes
- Application examples
- Practical Work: Short Term Variable Remuneration
Unit IV - The Importance of Setting Objectives with Excellence
- Why is it important to use excellence objectives
- Key elements to take into account
- Approach to Goal Setting
- Assessment of the starting point/initial situation
- S.M.A.R.T. methodology for objective setting
- Beyond SMART: SMART+® Decalogue of the Ideal Objective
- Value Trees
- Challenge: From Achievable to Ambitious
- Examples of Excellence Goals
- Range of Results. Target, Minimum and Maximum Scenarios
- Target Scenarios
- My Objectives:
- vs My Objectives
- vs my Superior's Objectives
- vs the Objectives of my Peers and other Stakeholders
- vs the Environment
- Objective Setting Activity
Unit V - Long-Term Incentives and their Impact on Enterprise Value Creation
- Why is it important to have Long-Term Incentives?
- General Objectives of Long-Term Incentives. Value Creation
- Families of Long-Term Incentives
- Systems for publicly traded and unlisted companies
- Long-Term Incentive Rights
- Full Value Rights versus Appreciation Rights
- Restricted Stock
- Performance Share Units
- Phantom Shares
- Deferred Bonuses
- Stock Options
- Incentive Valuation - Black & Scholes - Binomial
- Value Creation Units
- Exercise: Calculating Value Units
- Exercise: Calibration of Stock Option vs Restricted Stock
Unit VI - Benefits, how they work, which ones to choose and their impact on the Employer Brand
- Why award Benefits instead of cash?
- Designing a Benefits Policy
- Benefits as an Employer Brand Distinctive
- Objective of each Benefit and its Impact on Employees
- Design and Competitiveness Parameters of the most prevalent Benefits:
- Medical Plan
- Life and Disability Insurance
- Retirement Plan
- Lunch (provision or subsidy)
- Loans
- Automobile (company car allowance and/or recognition of auto expenses)
- Auto (company car allowance and/or recognition of auto expenses)
- Comfort Benefits and Work/Non-Work Time Balance
- Flexible Benefits
- Tax Treatment and "grey cases"
- Benefits Reporting
- Benefits Communication
- Benefit Program Development Practical Work
At the end of the Strategic Compensation and Benefits Management Training Program participants should be able to:
- Know all the components that comprise compensation
- Manage equitable and competitive Compensation and Benefit Programs
- Know and use Job Evaluation and Classification Systems
- Develop and interpret Compensation and Benefits Market Surveys (job to job comparison, comparison by level of responsibility, regression curves). Meaning of typical statistics commonly presented (percentiles, averages)
- Develop and interpret Compensation and Benefits Market Surveys (job to job comparison, responsibility level comparison, regression curves)
- Develop competitive salary structures (# of salary bands, amplitude, progression, overlapping, positioning with respect to the market) .
- Propose different alternatives for salary adjustments based on performance, competency and/or market evaluations
- Know the design bases and factors to be considered to implement and administer short term variable compensation programs (e.g. Annual Bonuses) linked to the performance of each employee and the company's results
- Know the design basis and factors to consider for variable compensation programs for the Sales Force
- Know the operation and main characteristics, prevalence, as well as advantages and disadvantages of different long-term variable compensation schemes linked and not linked to shares (e.g. stock options, restricted stock, phantom units, performance shares, others)
- To know the best techniques for setting management objectives and their relationship with incentive systems .
- Know the design bases of the main Benefits prevalent in the market, as well as their main characteristics
- Project the economic impact for the employer of the different compensation and benefits programs based on the planning of salary actions and staffing, with the objective of being able to elaborate an annual budget
- Communicate the value proposition for the employee taking into account the most relevant elements of compensation, benefits and their valuation, as well as impacting the employer brand
- Comment on the latest market trends in compensation and benefits management, as well as the expected changes and challenges demanded by new generations
- Relationship between compensation management and other human resources activities including performance management, promotions, training, development, etc.
These are some of our Areas of Expertise: