Specialized Or General: 5 Questions To Help You Determine The Best Type Of Compensation Consultant For Your Firm
Once you decide that you need to hire a compensation consultant for your firm, you will realize that there are several different types of compensation consultants. Some compensation consultants concentrate solely on high-paying positions, such as CEO compensation. Other compensation consultants provide various compensation packages for your entire company. Some consultants specialize in your company's field, while other consultants work for a wide variety of companies in various fields. To help narrow down your search for a compensation consultant, there are a few things that you should decide.
Are you looking to fill a particular position?
If you know that you are looking to fill one or two higher-level positions in your company, then you should look for a compensation consultant who is experienced in putting together management level packages. If you are hiring multiple people in a single branch of your firm, such as taking on more junior accountants in an accounting firm or looking for more senior developers in a web development firm, then you should look for a consultant who has experience with the exact position you are looking to fill. This way you can be sure they know what makes a competitive compensation package and that you will be offering a package at or above industry standards.
Are you having any financial issues that need an adjustment in your overall compensation strategy?
If you are having financial issues that can cause you to rethink your entire compensation strategy, from the top down, you may want to consider hiring a general compensation consultant with a strong background in finances. This way they will be able to adjust all of your compensation packages without making employees at any level feel like they are losing benefits and possibly increasing employee satisfaction while saving you money.
Do you want to provide a unique, cutting edge compensation package to your employees?
If you are looking to hire and retain the best of the newest generation of employees, you should consider offering a unique, modern compensation package that includes work-life integration ideas. To create this type of compensation package, you should look into hiring a consultant that is not necessarily specialized in your field. While they should have a general understanding of compensation in your field, if they come from a different field they can bring in tested compensation methods that may not be commonly used in your field.
Are you looking to hire new employees or retain your current employees?
If you are looking to hire new employees, you may need a general compensation consultant who specializes in millennial psychology and compensation. They will be able to provide packages that appeal to the younger members of the workforce. However, if you are looking to retain older employees, you should hire a consultant who specializes in your field. This is because your employees will already have a good idea about the standard compensation packages in the industry and will be looking for something comparable to what is currently available.
What experience level are you looking for in new employees?
Similar to the above situation, if you are looking for fresh, new employees with little experience in your industry, a general compensation consultant may be able to craft compensation packages that appeal to a wider audience and attract new employees. However, if you are looking to attract experienced employees, then you may want to hire a consultant from your field to make more nuanced and competitive packages.
Finding the ideal compensation consultant can help you attract and retain the talent that you need while saving your company money. However, it is important to know what type of consultant you need to look for.