McLagan’s holistic approach to compensation evaluation includes:
- Competitive market methods and practices.
- Key performance metrics.
- Organizational and business structure.
Our surveys are used to:
- Ensure market competitiveness to recruit, engage and retain staff.
- Align reward programs with business strategy and relative performance.
- Understand peer practices on benefits, deferred awards, performance measurement, salary budgeting, severance policy and more.
- Build salary budgets, bonus pools and accrual accounts.
McLagan's 600+ annual global surveys cover all forms of compensation measured across divisions, businesses, roles and firm types. Our extensive participant group includes the leading organizations in all business sectors. And, our customized analysis includes a summary that highlights key issues and trends in business, financial and regulatory matters by geographic area.
Case StudyA leading commercial bank was looking to grow their fixed income business from a leading regional player to a leading global player. In order to do this, they wanted to ensure that their compensation practices (methods and levels) were aligned with the competitive market so that they could attract, motivate and retain the right talent to drive their business strategy.
With McLagan's global compensation benchmark surveys, methods of pay studies and productivity data, the firm was able to benchmark its employees to the market and analyze its global salary and incentive awards practices relative to competitive market levels and approaches for each location. The bank was also able to evaluate the appropriateness of different scenarios of funding /accrual levels relative to various key performance metrics in their peer group (e.g., net contribution, revenue per head, revenue per compensation dollar).
The analyses using McLagan's proprietary compensation and productivity studies determined that pay levels for the firm's fixed income business were substantively below market, while their relative performance exceeded that of the market. Heading into the year-end bonus allocation process, the firm adjusted incentive pools to support the firm's successful fixed income business.