Structuring a Compensation Plan

compensation plan

Are you overwhelmed with the thought of hiring a new employee?  Do you know what the current salary is for the position or how to structure a compensation plan?

At Coveted Financial we often meet monthly with our clients to strategize and implement new procedures. At one of our most recent meetings with a Chicago based company, we met with the owner who had built the business with his wife for the past 20+ years. He quickly became emotional when talking about the sacrifices his wife had made to support him and the business. His wife was invaluable to the organization, maintaining the books, accounts payable and receivable, and single handedly running the HR division. She was her husband’s right hand.

Recently the spousal business owners had become grandparents. The wife wanted to transition out of the business and spend her days with their new grandbaby. To the husband, the thought of “replacing” her was impossible. The task of even drafting a job posting and outlining all the responsibilities his wife had was overwhelming, let alone the interviewing, negotiations, and training. The owner wondered how he could even develop a compensation plan.

Because we operate on such a personal level with all of our clients, essentially becoming part of the organization, we understood this challenge. However, we also are on the outside of the business, thus have the ability to see the problem externally. We are able to understand all of the wife’s tasks and draft a job scope. We’re able to remove the emotions from the interview process. And due to our nature of working with a variety of clients, we know salaries and compensations plans.

Most importantly, when it comes to financial roles in the organization, whether that be a bookkeeper, a controller, or a CFO, we can make sure their strategies are aligned with your company’s growth plan.

The Takeaway: Hiring a new employee is time consuming and overwhelming. Especially when it means filling in such “big shoes.” We were able to help our Chicago suburb client find a controller that met the job qualifications and fit in with the company culture. We were also able to structure a compensation plan that was in line with the company’s financials.  In the end, the new controller relieved stress from the wife and gave her the time she wanted to spend with her grandkids.

Let Coveted help you hire and structure a compensation plan for your next controller, director of finance, CFO, or bookkeeper.

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