When it comes to a company's success, it takes good employees. In some cases, though, if you're paying them too much, it can break your company. So, there has to be some middle ground. You want to make sure that you aren't drowning your company, but at the same time, you want to make sure your employees are receiving the best possible pay packages. This is where compensation consultants come in.
Should You Hire a Compensation Consultant?
Here are two situations where splurging to hire a consultant may actually be beneficial to you:
- You Have Limited Knowledge – While it may be hard to admit, you may not necessarily have the expertise or the know-how to perform the compensation planning for the company or the time it will take to learn it. You could opt to purchase HR software for assistance, but you'll still have to figure out how to use it. Therefore, you're wasting valuable time that you could be spending running your company and addressing other pressing concerns that only you can deal with. So, the best approach is often hiring a consultant who is experienced in your industry.
- You Need More Than a Consultant's Know-How – When you hire a compensation consultant, you will receive a whole lot more than just their knowledge. In fact, you will get their perspective as an outside expert. They'll be able to help you get things done inside of the office that you may not have been able to do otherwise. For example, your CFO may be making a salary that is significantly more than other CFOs in the same industry. You may not realize it, and if you did, then you may simply not have the heart to tell them that you need to reduce it. Luckily, the compensation consultant has no ties to the CFO and will have no problem addressing the over-paid employee regarding the payment issue.
How You Can Help Improve the Overall Process
If you examine your individual company situation and determine that hiring a compensation consultant would be beneficial, here are a couple of things you can do to help improve the overall outcome of the process:
- Remain Involved at All Times – As the HR manager of your company, it is crucial that you remain close to the consultant throughout the entire process. Make sure that they are up to speed with the organization's history, the existing compensation plan and even key employees in the company.
- Provide Help When Needed – Don't hesitate to see if there is anything that you can help with. In some cases, there may be some steps in the process that may be easier for you to handle than the consultant, such as taking survey data and matching it with jobs in the company. By doing this, your company may even be able to save a little bit of cash.
To learn more, contact a consulting firm like Fox Lawson & Associates, A Division of Gallagher Benefit Services Inc.