NFP Compensation Insights | October 2023
Our Role in Risk Management
The role of compensation consultants is vital when it comes to risk management. Companies should be able to rely on us for peace of mind, knowing we have equipped them and their Boards with all the information needed to make sound, well-informed decisions regarding their compensation programs. Companies today have much to grapple with and risk management is high on the list. With concerns around multiple compliance issues and the struggles to attract and retain talent, consultants are key to ensuring not only compliance, but also compensation alignment with company objectives and acceptable market practices to mitigate potential risks.
In this month’s featured article, we highlight seven pivotal functions to reducing risk and fostering organizational stability and growth. We hope you find this information helpful in your risk management strategy. As always, don’t hesitate to reach out to NFPCC for expert assistance with your risk assessment process to ensure compliance and synergistic alignment with your company’s goals.
By Tyler Brown
In today’s dynamic business landscape, risk management is a paramount concern for organizations striving for sustainable success. Among the myriad aspects of business operations that require careful oversight, compensation management stands out as a crucial area that can impact an organization’s risk profile. Compensation consultants play a pivotal role in helping companies navigate these complexities. Below our team delves into the multifaceted role of compensation consultants within risk management, highlighting seven key functions that contribute to a company’s stability, long-term viability and reputation.
How Employers Are Managing Compensation Challenges in 2023
With 2023 well underway, many employers are still trying to find the right levels of pay for their employees. The stakes are high: If employers don’t get compensation right, they may find themselves losing out on talent.
The quest to attract and retain talent over the past year has already caused employers to push pay levels higher than initial projections.
Assessing Risk in Incentive Compensation Plans
Incentive compensation can be a powerful tool to properly align employees with the achievement of the company’s objectives. Over the years, however, and in the aftermath of the financial crisis of 2008–2009, there have been numerous examples of incentive compensation programs motivating behaviors and activities that resulted in unintended consequences that damaged company reputations, financially harmed companies and their shareholders, and culminated in employee and executive terminations.
NEWS & UPDATES
Avoid Undue Risks! Identify Red Flags and Avoid Negative Outcomes
Compensation risk assessments and pay equity analysis by NFPCC can identify any problematic issues in your compensation plans that could possibly encourage excessive risk-taking, have a negative material effect on the company, or that are not in complete compliance with current regulations. NFPCC can conduct an honest and objective review of your pay structures to determine the possible existence of pay discrimination within your company and even identify fact patterns potentially trending in the direction of pay discrimination so you can rectify before it happens.
Mitigate litigation risks and gain a competitive advantage in your industry with equitable and compliant pay practices by conducting a risk assessment and pay equity analysis. Learn more about our processes below.
Leave Strategies for Engaging, Acquiring and Retaining Talent
NFP’s latest Leave Management and HR Trend Report provides powerful insights for Employers on how to manage the various types of leave policies. Impactful information for HR leaders including the latest trends and best practices to help their organizations attract and retain top talent!