One day, after taking a harder look at my bank account, I knew that my business was in trouble. We didn't have enough money in the bank to pay our employees, much less handle the rigors of an upcoming merger with another organization. I knew that I needed help, which is why I hired a professional business consultant. She came in, analyzed our business, and made helpful suggestions that really turned things around. It was amazing to see how much of a difference her advice made. This blog is all about using consultants to improve your business, so that you can keep doing what you love.
Running a business is no easy task, and when it comes to the financial side of things, it can get even more difficult. Some CEOs want to try to handle it on their own, but they will often find that it is way above their level of their expertise. While it be may hard, here are a few instances when it may make sense to finally hire a compensation consultant for your business:
You Need to Develop a Solid Financial Strategy.
You may be the leader and the brains of the business, but it doesn't mean that you can build a solid financial strategy on your own. It isn't uncommon for CEOs to construct some type of pay program to only find that there is no type of continuity in the system that they've developed. They need someone with financial experience to help them understand what's going wrong and to help them develop a sound game plan that is going effectively make the business work now and in the future. A compensation consultant can do this.
You Need Some Level of Pay Structure.
While you have develop a specific pay plan for your employees that appears to be pretty effective, there isn't really a specific structure when it comes to managing that pay plan. This can cause things to get messy down the road, especially when it comes to financial reports, taxes, etc. Luckily, a compensation consultant can come in, take a look at everything and compile it into a single dashboard. This includes everything from salary grades and promotions to benefits and incentive plans.
You Need to Achieve Better Performance-Based Metrics.
Many businesses offer annual incentives for employees. Usually, this is based off of certain performance-based metrics, such as a certain number of sales. Some metric plans contain too many metrics, while others are too discretionary making employees feel that the incentive is more of an entitlement. So, to ensure that employees are kept happy and motivated, a compensation consultant can help you set up the right type and number of metrics. In the end, you'll have the perfect incentive plan.
You Need Help With Measuring Your Return on Investment (ROI) on Compensation.
When it comes to business, every penny counts. Without compensation, your company would likely fail. It is crucial that the way your profits are being allocated are being properly justified. If you're a start-up, you may not know how to do this effectively. Companies that have been in business for some time may have put this on the back burner and may need help in figuring out how to get this back as a priority. Whatever the case may be, a compensation consultant can help. Contact a business, such as Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc., for more information.