Total Rewards Case Study
A regional insurance brokerage organization with approximately 250 employees had doubled in size over the course of a decade. Over the years, it had performed ad hoc updates to its compensation programs without any external guidance or holistic review. The Board compensation committee requested that the organization engage a third party to review the total rewards programs for reasonableness and competitiveness, especially the short-term and long-term incentive plans. In addition, management sought guidance on pay administration, governance, and risk assessment best practices.
- Review total rewards program for reasonableness and competitiveness, especially the short-term and long-term incentive plans
- Provide guidance on pay administration, governance, and risk assessment best practices
QTI Consultants met with the organization to gain a strong understanding of their strategies, goals, and total rewards philosophy. Next, the team developed a market-competitive total rewards strategy and performed an external compensation study. Guided by the total rewards philosophy and study findings, the base pay structure was then developed, and short and long-term incentive plans were reviewed to ensure they were reasonable and competitive. The team then provided guidance on pay administration, governance, and best practices.
- Market priced the organization’s executive and staff jobs and provided market-competitive base pay structure recommendations
- Reviewed the short-term and long-term incentive programs and provided recommendations for enhancement and simplification
- Developed pay administration and governance guidelines and performed a pay risk assessment
The impact of the total rewards project was as follows:
- Simplified the administration and increased the effectiveness of the short-term and long-term incentive plans and aligned with market best practice
- Mitigated risk by defining pay administration/governance policies for consistent application and developing incentive plan documents
The total rewards project was successfully completed within the organization’s budget and desired timeline.
As a result of the project, the regional insurance company now has a market competitive pay program and is experiencing significant process savings. The administrative burden of the total rewards program has been eased as it is now proactive rather than reactive.