Following a series of acquisitions, a leading construction company recognized the need to harmonize their compensation plans and programs, presenting a timely opportunity to transition to a more formalized pay-for-performance model. When the client reached out for help, Brillect had the perfect consultant for the project.
A Compensation Expert with a Vision
Enter David Gramer, a highly experienced global compensation leader with deep expertise and a sharp understanding of market trends in compensation.
“While I’ve managed different areas of HR, including payroll, HRIS, and benefits, and was even a generalist for a brief period, I’ve always had compensation under my wing,” said David. “At the end of the day, I’m a comp person.” He credits those experiences in helping him describe and understand how rewards programs fit within the broader perspective of organizational culture and HR programs.
Specializing in the building of compensation programs to meet business and organizational strategies, David prides himself on crafting solutions based on the unique needs of his clients.
With the construction client’s desire for a more performance-based compensation plan, David presented different options to drive pay for performance, including pay, bonuses, and awards, outlining the strengths and weaknesses of each.
Aligning Compensation with Culture and Strategy
When considering the best approach for his construction client to reinforce performance, David also wanted to ensure the compensation model supported their organizational culture and strategic goals.
“We had careful discussions around manager capabilities and culture fit,” said David. “Moving to performance-driven pay is a culture change, and it’s imperative that we didn’t jump in and push one situation. We needed to be more methodical and aligned with leadership.”
David says that crafting the compensation program is only the first step. As was the case with his construction client, he quickly shifted his focus to communication and implementation, noting that there has been an interesting transition in this space.
“It used to be 80 percent of the project was built in with our typical mechanics, and 20 percent was communicating to executives and HR folks,” he says. “Now there’s greater emphasis on better communication being driven by pay transparency laws and people’s desire to understand what’s happening with their comp plans and programs.”
Looking Beyond Compensation
Given employee trends and the marketplace, David says people are looking for different things from their employer. He emphasizes the importance of looking beyond cash compensation.
To that end, David has developed a total rewards scorecard that easily communicates if a client’s comprehensive total rewards programs are aligned. Scorecard results are supported by analytics to help clients understand where they may want to improve specific programs. According to David, “It serves as an excellent baseline to ground executives on how to invest or shift resources to better fit their culture and the competitive market.”
Navigating Critical Junctures: Expert Guidance for Lasting Impact
Selecting a new compensation and reward model is just one part of the equation. David said developing a communication strategy around the changes is also critical. He cautions clients that there is only one chance to influence employee perceptions of any changes, and if it’s not done at the outset, it’s very difficult to do it later.
“Most of our proposals, including our construction client, have a communications component,” he said. “We work with senior leaders, managers and employees to help people understand what’s happening and why. And that’s when the ROI of these programs kick in.”
Confidence in The Path Forward
Ultimately, the construction company opted to reinforce performance both with pay and bonuses. Their decision to gravitate away from a cost-of-living compensation model towards pay for performance aligns with broader marketplace trends.
“Across the market, funds for salary increases are not getting bigger,” says David. “You want to be able to allocate those budgets in the most efficient and effective way. Using pay for performance within base salary helps ensure those resources are receiving that return on investment.”
He notes that organizations are turning towards incentives to reward both short and long-term performance because it does not increase fixed cost, aligns business and individual performance, and can have a good “bang for the buck,” especially when compared to merit increases.
A Partnership That Drives Results
David credits his partnership with Brillect for helping him drive deeper value for his compensation clients.
“I don’t think I’ve ever said ‘no’ to a Brillect project because they know exactly what I’m good at,” he said. “They do a good job matching the consultant with the project, and they know that I absolutely love what I do. That shows when you work with clients. It is a fantastic partnership that is hard to replicate.”
At Brillect, our focus on Taking Care of People extends to both sides of the table. Our commitment to pairing experts in their field, like David, with clients facing critical junctures is a win-win partnership to help everyone advance their goals.
Whether you are interested in tapping into David’s expertise for your next compensation and total rewards project, or another professional in our highly experienced network of consultants, reach out to us. We are trusted advisors connecting you with the people you need to succeed. Contact us today and learn how you can leverage our experienced consultants to get the results you need.
