Compensation Isn't Just A Number
Compensation — we talk about this subject almost every single time we sit down with our clients and discuss financials.
We believe it is imperative that management takes a good hard look at compensation on a regular basis because let’s face it, having an inefficient compensation plan does not end up being fruitful for anyone. Compensation is the biggest expense line item many organizations incur and should be consistently evaluated and treated with cognizance.
More and more often, we are seeing additional creative ways to incentivize employees. Firms are coming up with new and creative ways to attract and maintain talent in an industry that has never been considered sexy. Perks such as complementary snacks and lunches, office parties and mid-week functions, more robust wellness programs or subsidized gym memberships, and new and fresh office space that includes ergonomic work stations are all becoming more and more popular. The days of stale work environments are over.
Separately, we are also encouraging our clients to look at alternative ways to structure compensation plans.
It is oftentimes important to have some variable compensation for all employees, not just the sales team. This structure helps encourage growth and creates motivation across an entire organization. For example, if in conjunction with a salary, the service and support staff of an organization had a variable component which was based on the performance of not only their division but the organization as a whole, this can help encourage collaboration across all divisions.
Additionally, the consideration of expanding ownership is crucial especially for organizations who never plan on selling externally. While this approach is not one that creates additional dollars in your employees’ paycheck each month/week/ etc., it does create tremendous value for employees.
There are so many ways to compensate employees effectively and efficiently. We believe that finding the right balance of actual compensation, value-added perks, and other alternatives that add value is critical.
MarshBerry 360 seminars enable insurance distribution professionals to understand the various strategies to help lead their firm to growth and profitability, and to help as they work to maximize shareholder value.