Executive Recruiting Expert Chris Hingle offers advice on Executive Pay
January 20th, 2010Compensation – Making Sense of Dollars & Cents
by: Chris Hingle
Talented executives gravitate toward firms where the structure of the pay – not just the amount – is consistent with their culture. In my 25 years advising businesses, I’ve learned that compensation reflects not only the value placed on employees, but also the environment they work within. Just like the different grades of fuel that determine your car’s power, pay packages should match your organization to ensure maximum performance. Here’s how:
Know Your Culture:
The first step to considering executive compensation is examining the company’s culture, philosophy and mission. A demanding, high-performance environment requires premium-level pay, while a slower-paced job does not. Likewise, the way compensation is structured should reflect the employee and the demands of his or her job. An executive attuned to the high-stakes environment of a startup, for example, will expect performance incentives that differ from those at an established company with a longer outlook. Finding the right combination of base salary, bonus and benefits matters as much as the total amount offered. In short: Your choice of compensation should not be dictated by dollars and cents, but by common sense.
Be Consistent:
Making thoughtful compensation decisions over the long term helps protect the company during uncertain times. If your employees, their jobs and their salaries are matched well from the beginning, your company will develop a reputation for being consistent in how it compensates executives, regardless of the broader economy. Resist the temptation to hire at a lower salary than a position demands simply because the job market is poor. While doing so may save money in the short run, the result often is that the best employees leave as soon as the economy improves.
Professional Guidance:
At Christopher Frederick, we go the extra mile to tackle the industry’s most challenging searches and recruit only the best executive talent. It starts by listening. With 25 years in business, we’re experts at learning the nuances of a company’s culture and goals. We also delve into each applicant’s goals, motivations and attitude to find the best match for our clients. The result is a world-class executive who is not only qualified, but ready to guide your team to new heights!
Contact:
Chris Hingle: 1-800-EXU-FIRM, ([email protected])
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