Strategic design of compensation systems
Considering an approach to all the compensation elements that fully adheres to the company’s strategy is essential for turning remuneration practices and policies into an appropriate driving force in order for the objectives of the company to be achieved, in both the medium and long term. At Merit Consultores we help organisations to redefine their remuneration strategy in response to a competitive, ever-changing environment using methodology which revolves around four main elements:
Review of compensation practices in line with the company’s strategy.
Review of key aspects with regard to market practices.
Optimisation of the company’s investment in compensation.
Definition and design of high-impact initiatives in the long term.
Defining appropriate remuneration structures is key to the efficient and effective management of compensation in organisations. Merit Consultores is able to help create remuneration structures which guarantee:
The desired level of internal equality: By means of analysing the connection between remuneration and the differentiating factors in terms of hierarchy and corporate positions.
The intended degree of external competitiveness: Through the definition of appropriate market positioning in line with the Company’s talent acquisition strategy.
The level of possible development in remuneration according to the way in which the positions of the organisation are structured.
The desired cost control.
At Merit Consultores we help our clients to define variable remuneration systems which make it easier for companies to achieve their objectives in the short term, while considering the main elements of their structure:
“Target” levels for variable remuneration.
Definition of objectives.
Combination of metrics.
Definition of achievement levels.
Lastly, at Merit Consultores we prepare the documents which lay down the rules to determine the way in which the system works.
Our experts in Total Rewards & Executive Compensation give advice on the implementation and design of long-term incentives, in respect to cash and also based on the share value (Phantom Shares, Stock Options, Performance Stock Units, etc.), as key elements to connect the interests of employees and shareholders in the long term. In this respect, Merit Consultores helps to define the main aspects of these schemes, which include:
Groups of beneficiaries.
Levels of granting.
Duration and frequency of granting.
Conditions for consolidation and/or settlement.
Lastly, at Merit Consultores we prepare the documents which lay down the rules to determine the way in which the system works.
IT IS ESSENTIAL THAT THE COMPANY’S INVESTMENT IN THE REMUNERATION OF ITS EMPLOYEES OPTIMISE THE EXTENT TO WHICH THE COMPANY’S STRATEGIC OBJECTIVES ARE ACHIEVED
