New research from ALM’s Consulting Intelligence division, formerly known as Kennedy Consulting, reports that consultants are working with clients to adapt to the workforce of the future. There is a clear need for investment in compensation and rewards strategies from the C-Suite; and a mandate for compensation committees to focus on brand reputation and social responsibility. Increased regulatory scrutiny (pay equity and new tax legislation) continues to drive client demand.
“Consulting firms are increasingly working with the C-suite to align business and compensation strategies. Prioritizing investment decisions to secure and retain the best talent with innovative compensation and reward strategies focused on the employee value proposition is integral to improving business outcomes,” said Laura Becker, Analyst at ALM Intelligence. “To create powerful compensation strategies and platforms, data-driven technologies provide robust insights through benchmarking, surveys, and organizational data to target job architecture, job families, pay equity, pay for performance programs, and overall compensation transparency and fairness.”
ALM Intelligence explores how consultants are advising their clients on compensation in this dynamic, workforce-driven environment focusing on several key delivery capabilities:
• Helping organizations develop compensation strategies aligned with business strategies to attract, align and retain talent for the workforce of the future the employee value proposition;
• Bringing powerful data-driven tools for clients to use analytics, AI-driven platforms and cloud-based compensation data management solutions to provide deeper market data to create robust analyses for better market positioning, best practices and compensation administration;
• Developing proprietary accelerators and tools (some AI-driven) to provide job architecture, job evaluation, pay equity, share plan, and tax plan guidance;
• Advising on increased regulatory and shareholder scrutiny on disclosures and pay practices with pay equity legislation, tax legislation, GDPR, linking executive incentives to environmental, social and governance objectives, ongoing scrutiny of Say on Pay proposals, and CEO Pay Ratio disclosures.
This research covers executive compensation including compensation committee and board of directors, broad-based compensation, and sales force compensation. Depending on a client’s needs, whether it be independent compensation committee expertise or a transformative workforce compensation strategy, there are a varied set of providers who participate in this space. There are broad advisory firms providing end-to-end advisory including tax and legal expertise; traditional HR consulting firms, some providing long-established HR advisory and others very focused on the emerging employee value proposition; and boutique and mid-sized firms who specifically position themselves as independent advisors to compensation committees and boards on issues pertaining to executive compensation.
Providers covered in the report include A. J. Gallagher, Accenture, Aon, Baker Tilly, BDO International, Buck, CBIZ, Inc., Compensation Advisory Partners, Compensation Resources, Inc., Compensia, Culpepper, Deloitte, EY, FW Cook, Grant Thornton, IBM, Korn Ferry, Longnecker & Associates, Mercer, Meridian Compensation Partners, Pay Governance, Pearl Meyer, PwC, Schuster-Zingheim and Associates, The Segal Group, Semler Brossy and Willis Towers Watson.
ALM’s Vanguard research series assesses firms in terms of their relative ability to create impact for their clients. In addition to its overall rating assessments of consulting providers’ depth and breadth of capabilities and best-in-class provider designations, this series includes detailed capability evaluations for each covered provider as well as a qualitative analysis of their consulting organization, approach, and service delivery model.
For more information or to obtain the full version of The ALM Vanguard: Compensation Consulting 2019, visit the ALM Intelligence website crp.consulting.almintel.com/.
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