Creation of Long-Term Incentive: Privately Owned Company
Challenge: Our client needed to develop an affordable, long-term incentive plan that would serve as a robust retention tool. Our client engaged us to redesign their long-term incentive plan to be affordable and aligned with the growth of the business, without reducing participation or reducing incentive opportunity for participants.
Solution Deployed: Our team conducted a thorough review of the existing compensation package, conducted interviews with stakeholders to determine key objectives, compiled market data and practices, and reviewed metrics related to performance elements, performance goals, and participation. Compensation Works is providing simplified plan documents, including participation acknowledgments and rewards statements.
After the review was complete, our team recommended that our client identify additional performance measures explicitly tied to growth. They worked to ensure those plan elements aligned with company objectives and would drive desired results.
We also recommended changing thresholds to align with available funding and aligning metrics to growth measures. A change management plan was designed to support client roll-out.
Business Value Delivered: With input from our team, our client’s HR leadership team is working on implementation strategy, on-going communication materials for various platforms, manager socialization, training, talking points, and FAQ’s. Our client plans to roll the new long-term incentive plan in the next fiscal year.
Client Industry: Food and Beverage
Project Type: Long-Term Incentive Plan Structure, Pay Philosophy, Change Management, Strategic Communication,
Business Structure: For-Profit, Private