If your small business has been thriving, you have started to employ and pay a lot of employees. You might have used industry surveys, want ads and your own knowledge of the industry to come up with pay rates and salaries. However, unless you have a formal business compensation plan in place, you might not be able to attract the best and brightest in your industry. A compensation consultant can help you keep your company's finances on track while ensuring that everyone is compensated competitively for their work. Here are some specific ways a consultant can help your company.
As you run your business, hire new employees, and create new positions that need to be filled, you might not have time for much else. You may no longer have the time to look through salary surveys any longer and analyze how statistics apply to your particular business. Having a compensation consultant onboard can help you save a lot of time, as they are an authority who can gather relevant information and present it to you in a way that is clear and provides the guidance you need to set appropriate and attractive pay rates for employees.
Going Beyond Salary
If you would like to start offering incentives such as end-of-year bonuses or stock options, a consultant can assist you in figuring out which incentives make sense for which employees and how best to administer them.
Saying Hard Truths
Because you are taking on a consultant for their expertise in determining the compensation structure in your company, they will be able to say things that only an outsider can say. For instance, they may tell you that you're paying yourself too much money compared to others in similar positions. These kinds of truths might be hard to hear, but taking recommendations from a consultant and making appropriate changes to create a better compensation plan is good for your business.
Planning for the Future
If you foresee hiring additional employees in the future, the compensation consultant can sit down with you and provide some idea of how they should be compensated and how those salaries will fold in with the company's other finances. They may be able to help you discover at which point you should stop hiring new employees in order for your business income to grow properly.
With the help of a reputable compensation consultant, you can pay your employees what they're worth without putting the finances of your entire company at risk. Talk with a few compensation consultants to be sure that you choose one with experience in your field.
For a compensation consultant, contact a company such as Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc.