How we present a comp plan that will be accepted

How we present a comp plan that will be accepted    

 We learned to summarize all aspects of the offer on a sheet of paper for the candidates. In addition to the normal title, hours, and salary, we break down the variable to make it clear to the candidate what they might expect. Over the years, we have developed this presentation to include 3 levels of performance and 3 possible incomes they would yield.  Without this information, I found that candidates often didn’t understand or, worse, misunderstood the variable and would often plug in the wrong numbers based on their current position. Once a candidate makes this mistake and comes up with the wrong numbers and talks to their spouse, it becomes very difficult to change their thinking. Especially if you also have to change the spouses’ thinking.

 Here is our formula to present a comp plan that will get accepted:

Go over each of these when you make your offer.

- Title of position

-     Duties / Responsibilities / Authority

-     Expected start date

-     Days / Hours of work

-     Exempt or non-exempt

-     Paid time off

-     Benefits begin on.....

-     Other

-     Base salary or Hourly wage

-     Variable / bonuses / commissions based on ….(example: Line T7406 of the Toyota Service DOC)

 Variable

-     Underperform: If your work produces no change from the company’s performance last year your variable compensation will be $________

-     Perform at target:   We are looking for a 10% increase in (performance, sales, profit, etc.) and your variable compensation will be $__________

-     Perform above target: Reach a 15% increase in (performance, sales, profit, etc.), and your variable compensation will be $__________

  I encourage my clients to use a presentation like this to make it crystal clear what the candidate can expect. Note: I have found that high performers always feel that they will be “above the target range.” Many ask what a 20% improvement pays them.

 An added plus, with this pay plan presentation, the majority of your offer letter is written!

 Donald Jasensky Founder and CEO of Automotive Personnel, LLC  and author of "Hire Like A Pro" – available on Amazon.com

Don is available to coach your hiring managers.

Don@AutomotivePersonnel.Careers 216-226-8190