Module: Develop your team Align compensation

In this highly competitive market, hiring and retaining top employees can be challenging and expensive. But constant turnover can be more costly. That’s why designing and implementing the right compensation plan, one aligned to your goals, is so important. Linking compensation with performance goals, team-based goals or company-wide milestones reinforces specific skills and motivates employees.1 Your employees will likely be happier and more productive, and client service will likely increase.

 

1Source: Charles Schwab, Establishing a firm’s legacy through a cycle of opportunity, 2020

On this page

Explore incentive targets (Data snapshot)
Aligning comp with business goals (Insights)
Assess your comp structure (Reflection)
Compensation and incentives planner (Tool)

“Incentive compensation, despite being an extrinsic variable, can help optimize the intrinsic engagement of an employee.”

— David DeVoe, Founder and CEO at DeVoe & Company

A 4-part path toward a high-performing practice, starting from ‘defaulting to tenure-based pay,’ moving through ‘designing total compensation’ and ‘tying incentives to performance’ and ending at ‘fueling engagement and growth’

How do you build a compensation model that is performance-based, role-aligned and directly connected to key business outcomes? The tools and tips in this lesson can help you create a team compensation and incentive model that supports scale, succession and team engagement. You’ll be better positioned to attract — and retain — the top talent who best serve your clients’ needs.

Data snapshot

Explore incentive targets

Looking for a way to align your team toward the execution of your goals? Incentive-based compensation is incredibly effective and an increasingly expected component of total compensation.

Is performance-based incentive pay part of the package for all your employees? Depending on the role, compensation can be structured to include up to 50% performance-based pay. Choose the key targets you want your team to hit and then put a meaningful incentive behind it. Incentives don’t make the impossible possible, but they do provide a useful nudge. 

INSIGHTS

Aligning comp with business goals

In this video, David DeVoe talks about designing a compensation and incentives structure that supports team needs and business objectives.

David DeVoe

Founder and CEO, DeVoe & Company

4MINVIDEO

TOOL

Compensation and incentives planner

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Case studies

See what the theories above look like in real-world practice. Find insights, ideas and inspiration that make it easier to visualize your next move. 

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Tools and takeaways

What are your next steps to consider? Eliminate the guesswork with these action items that help you build and maintain momentum.

View tools and takeaways

CE credit details

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