November 11, 2024
I sometimes get asked: “Why do I need a compensation professional? Can’t I just do an online search for the information I need and then a comp project by myself?” Well… You certainly could try digging for answer(s), but even if you eventually find useful information, applying it to your situation might not be easy – and might not yield the best solution for your organization.
Using the services of a qualified compensation consultant, on the other hand, will put you in the capable hands of a professional who brings both the necessary current knowledge as well as years of real-world experience needed to apply that knowledge.
Education Matters for Compensation Consultants
Simply put, highly-skilled compensation consultants are specialists in their field. That specialization requires education, both the “school of hard knocks” kind AND practice-specific training – typically by taking and completing a Certified Compensation Professional, or CCP, program. As a CCP, a compensation consultant will have taken a series of classes (typically 7 to 9) and passed an exam for each. Getting a CCP certification is a lot like getting a CPA license, but specific to compensation. And just as CPAs know the ins and outs of accounting, compensation professionals know the ins and outs of compensation.
Experience Matters for Compensation Consultants, Too
Compensation specialists typically gain a fair amount of experience before they go into consulting, or they may work for a large consulting firm where they can learn over time. Consultants with backgrounds in a variety of industries bring many diverse experiences to the table, having seen what has worked (or not) in different industries and situations. Even more valuable is choosing a compensation consultant who has worked both as an internal and external consultant. A compensation consultant with both internal and external consulting experience is typically adept at designing and executing diverse and balanced compensation systems, policies, and processes – with varying degrees of scale and complexity. What’s more, a knowledgeable and experienced compensation consultant will understand that the programs, practices, and processes they develop must be both correct and workable now and adaptable as labor environments evolve.
Education Plus Experience Equals Expertise
Taken together, a compensation professional who bring both certified training and years of experience should possess the total-package expertise you need. Look at it this way: if you had cancer, you would not want to see a general practice doctor who covers everything, but instead would feel more confidence and peace of mind by consulting with a specialized oncology expert. The same holds true with compensation expertise. You see, most human resource professionals are generalists who wear many hats. (I know from my own experience that you cannot be expected to be an expert at everything when you are a generalist.) On the other hand, you will get better results and feel greater peace of mind by engaging a consulting professional who is trained and experienced in market benchmarking, building pay structures, conducting employee analyses, executive benchmarking, building bonus and incentive plans, performing discrimination analyses, and managing other compensation issues.
The Cost and ROI of Using a Compensation Consultant
Still, you might be wondering, “Aren’t compensation consultants just an unnecessary costly expense?” Certainly, engaging with a compensation consultant who brings deep expertise does carry a cost – perhaps as much as your CPA, but typically not as much as your attorney. You can often save by choosing a local consultant rather than a regional or national firm. Ultimately, however, it’s important to consider your return on investment; most compensation consultants will yield significant ROI if what they develop and help you implement saves the cost associated with even a single turnover.
The Bottom Line:
Since compensation is a key factor in attracting, retaining, and motivating talent, wouldn’t you want a specialist who is truly knowledgeable in this area? Just as you use your legal counsel, recruitment professionals, and other experts when needed, employee compensation is also best managed by qualified experts. And because most compensation projects are completed within a few months, maintaining that level of expertise with in-house staff is prohibitively expensive for most small to mid-sized companies.
That’s why it makes sense to engage a compensation professional with deep knowledge, experience, and overall expertise. Let them help you craft employee compensation programs that empower you to attract, retain, and motivate your employees. It takes many years to earn the tagline “Your Trusted Partner for Compensation Consulting,” but Total Reward Solutions has done just that! If we are not already your compensation expert, we would like to be. And, as always, we appreciate your referrals to others who need compensation expertise. Contact us today at 317.589.8529 to discuss your unique employee compensation challenges.
Cassandra Faurote
About Total Reward Solutions:
Total Reward Solutions is your trusted partner for compensation services. Led by Cassandra Faurote, professionally certified Compensation and Human Resources expert and author of the book Compensation Sense 101, Total Reward Solutions offers a broad range of compensation and total rewards consulting services to help your organization attract top talent, motivate employees, and retain top performers. We can partner with