The question often arises as to whether to develop your pay programs in-house, or spend the money to hire a compensation consultant. Below are five significant reasons for engaging a capable compensation consultant:
- Specialized Expertise: A capable consultant is already well grounded in the terminology, principles, regulations, analytical processes and methodologies generally applicable to compensation planning and management. They are also experienced in applying those concepts and methodologies to help a broad set of clients successfully handle a similar set of problems.
- Objectivity: A good consultant is personally dispassionate about the outputs and outcomes associated with their work and/or the recommendations they provide. They can offer advice that is in the best interest of the client organization, and do so free from any personal interest or opportunity for gain associated with any given recommendation or outcome.
- Availability: Compensation projects generally involve a substantial amount of analytical work that may be beyond the time available to even very capable staffers. As such, a capable consultant will be in a much better position of focusing their efforts on the timely completion of a compensation project, and be able to do so with limited distractions.
- Return on Investment: There is a substantial cost associated with compensation errors of any type. Supplementing your internal HR staff with expert advice better ensures that your compensation programs are appropriately competitive, strategically targeted, and legally compliant, and therefore reduces the costs associated with common compensation mistakes.
- Mentorship: A good consultant not only brings effective solutions to their clients, they are capable and committed to building the “internal competency” which enables clients to do well for themselves.