Executive Compensation Benchmarking
The planning of a company's remuneration policy has to take into account several elements, not only internal to the organisation, but also related to external market logics, in order to benefit from a “data-driven” decision-making process, guarantee effectiveness for all stakeholders and sustainability in the medium to long term.
Our Head Hunting experience and the transversal nature of our Observatory resulting from our Executive Search activity allows us to remain constantly updated on salary dynamics in a market that is certainly broad and characterised by evolutions that are not always linear.
Unlike other approaches in this field, our analyses are always rooted in market reality and not based on more or less sectoral averages, thanks to our precise knowledge of the salaries of individual professionals and managers.
We take a structured approach to Reward Benchmarking projects, which are typically divided into several phases. The first internal analysis: target role structure, rationale and as-is remuneration policies. Particularly central for us is the definition of the panel of companies on which to conduct the benchmarking, according to criteria of consistency with the client's organisational/cultural profile and market representativeness. Finally, the collection of numerical evidence and the qualitative/quantitative analysis of the data, whose representation (Total Compensation Architecture, Pay-Mix, Quartile Distribution) is always accompanied by recommendations in terms of guidelines for the future.
Our customers often ask us to accompany them in the “so-what” phase following the analysis of market data. Thanks to the concrete experience of many of our partners, formerly Human Resources Directors of complex (and often listed) companies, we can support company management in defining the reward strategy and preparing the supporting documentation: presentations for Remuneration and Appointments Committees, Remuneration Reports, drafting the Reward Policy, etc. We can also support them in the often difficult trade-off choices related to this kind of decision. The individual components of the reward system are also evaluated in terms of their overall coherence between Fixed Compensation, Short Term Incentive, Long Term Incentive, Benefits and Welfare and more generally with the Employee Value Proposition, in order to create a solid approach in line with business needs.
