JER HR Group partners with clients in developing their executive compensation program which may include: base salary, incentive pay, regular benefits, executive benefits and perquisites, deferred compensation. Our services are designed to help an organization develop a comprehensive compensation program that is designed to attract and retain executives.
In addition to base salary, the other elements of an effective executive compensation program may include:
Incentive Compensation Design
- Facilitate discussion around the advantages and potential disadvantages of implementing incentive pay plans for executives
- Executive incentive plans for senior executives with the highest level of accountability for organizational success
- Short- and long-term incentive plans to motivate and reward other staff. These may include spot award programs (one-time lump sum payments) and non-cash recognition awards
We design incentive compensation programs in a holistic manner. Executive incentive plans can be tied to pre-established performance objectives based on the strategic plan or, for other staff, linked to the performance management system. This provides a clear and transparent methodology for incentive program payouts.
Deferred compensation program design
- Work with clients to develop a total compensation philosophy and a strategy that includes deferred compensation as part of an executive’s package
- Recommend, in partnership with an outside retirement specialist, the design of a supplemental retirement income plan such as a 457(b) or457(f) that complements total compensation program for executives
- Work with retirement service providers on behalf of clients to implement deferred compensation plan
Sales Compensation Program
- Help create a strategic sales compensation vision
- Align sales compensation plans with overall organizational or business unit goals
- Design and develop appropriate sales goals and measures that are attractive to members of the sales team and to the organization
New Hire Compensation Design
In today’s fast-moving environment, it is common to find our clients making changes to their organization structure and staff roles, particularly executives. While a position may not require a regulatory review such as Intermediate Sanctions or NYS Executive Order 38, it is still critical that compensation of senior management positions is structured competitively priced to the market because of r various internal and external factors. Some common situations include
- Promotion of an executive to the next level i.e. C-level of the organization
- Senior-level new hire from the market
- Organizational restructuring leading to realignment of multiple staff and their roles and responsibilities
JER HR Group offers “New Hire Comp Analysis” review services at competitive pricing. The purpose of this review is to quickly market price one or more of a client’s executive positions without the need for a comprehensive report. This service may be appropriate for C-suite executives, Senior Directors, Directors and other senior management team members
Types of Analysis
JER HR Group offers three types of analysis depending on your needs. The most comprehensive analysis is total compensation analysis that is typically conducted as part of an Intermediate Sanctions compliance review.
- Total Compensation Analysis: This analysis would include base salary, incentive pay and reportable benefits including retirement benefits
- Total Cash Compensation Analysis: This analysis would include base salary and other type of cash incentive pay
- Base Salary Analysis: This analysis would be restricted to base salary analysis only
Staff Compensation – FLSA REVIEW
The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.
However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than prevailing wages per week. Job titles do not determine exempt status. For an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.
For each position selected for FLSA review, we carry out the following analysis:
- Review the job description.
- Apply the appropriate FLSA exemption test(s) under current regulations.
- Prepare a chart listing each position title reviewed, with recommendations for exemption status and comments relevant to the determination of the status for each job.
- Integrate the FLSA review results into the Salary Grade and Range Structure.
- Review required qualifications, education and experience to ensure they are consistent with FLSA status.
- Assess whether the FLSA status of jobs within an assigned job grade/band is consistent or if there are outliers.
- If there are outliers, flag them to determine if jobs should be reclassified.