Compensation and Benefits

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Compensation and Benefits

Decisions regarding compensation in an organization are extremely important from a variety of perspectives. Compensation decisions impact the relative strength of organizations in a global economy as they safeguard the strategic recruitment, motivation of appropriate talent, retention,and reward of human resources that ensure the competitive advantage sought by an organization.

Compensation, today, is viewed as both an expense and an influence on employee behaviour, impacting organization's financial performance. Does that mean paying high compensation invariably to an employee improves financial performance of an organization? The answer is 'No'. A lot of factors play a strong influence in this, majorly 'Pay mix'. It is about paying the right compensation to the right leader, aligning to the business goals which acts as a motivation to outperform in their jobs.

A common issue, which is costly for any organization, is of high pay despite low performance. This question is one of misalignment. In our latest survey on employee compensation, we found plenty of examples in which pay was too high for the level of performance delivered. With years of experience, our experts have defined a Fair pay or aligned pay.

Fair pay, is when total compensation of an employee, after performance has been factored in sensitivity to organization's performance over time and compensation is reasonable relative to the relevant market for talent and for the performance delivered

Our Compensation and Benefits model for customers helps youbuild pay philosophy, analytic methodologies, and decision-making processes in place to test and ensure alignment. We help you answer the most critical questions like

  • How much compensation is enough for your talent in proportion to the performance delivered? How much is too much?
  • How have your pay system and actions affected the relationship between employee performance and pay in the past? How will your pay systems and actions affect this relationship in the future?
  • What program designs or actions might cause poor alignment between performance and pay?
  • How can we design an Alignment Model that is right for your organization?
  • How should performance outcomes be measured and translated into pay decisions

3EA's employee compensation plans for clients are designed to support the organization's business strategy and to adapt to competitive and regulatory pressures in environment with a definitive purpose to gain and sustain competitive advantage. Compensation and benefit systems must help in creating a desired work culture in addition to accomplishing organization's goals. Our advisors are experts in defining the work culture the client wants to create with focus on providing impressive benefits to those contributing to the success of that culture.

Our approach:

Our approach towards design employee compensation and rewards services lies on three core pillars

  1. Compensation Market Analysis: Our advisors use the market data from various rich sources, from industry specific to geographic specific. In addition, we also design custom survey for critical positions or for key employees.
  2. Experts' Knowledge: Our dedicated employee compensations advisors are highly experienced in solving critical issues. We go beyond providing statistical data by using our knowledge and experience in dealing complex compensation problems
  3. Stakeholders' view: It is not always quantitative data that helps us define the compensation plans. We weigh multiple viewpoints ranging from promoter, board member to an employee in understanding the implications of a compensation plan.

"We design your compensation plans to attract, motivate, and retain the key employees who drive your success."

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