Compensation Goals

Survey Results: Do Compensation Metrics Align with Company Goals?

Fact: when every team is mapping towards their company’s critical goals, those goals are more likely to be accomplished.

And that goes double for something as foundational as compensation.

In a perfect world? The key drivers of your company’s success should directly correlate with how compensation is measured.

But we were curious — does this alignment even exist?

So, Payfactors partnered with Human Capital Media to survey the comp community. We wanted to find out how real compensation pros are measured and if those measurements actually align comp with important organizational goals.

Here’s a little taste of what we discovered about how your peers are measured.

 

THE DISCONNECT IS REAL

The big question at hand here is whether or not compensation goals align with company goals.

Our first question?

What comp pros consider as their organizations’ largest drivers of success.

Check out the top five answers:

  1. Customer satisfaction 
  2. Product/service
  3. An engaged workforce
  4. Growth
  5. Consistency and reliability

No question — compensation has the ability to positively impact all of these top drivers!

Is your company looking to build the sharpest development team in the industry? Or maybe recruit the strongest customer satisfaction representatives you can find?

You guessed it — comp can help with that!

Competitive compensation is the key to attracting (and retaining!) the top tier people that will successfully drive your business forward.

But. This only works in your organization’s favor if compensation is putting its time, resources, and strategy behind the right goals (a.k.a. the critical goals the business is looking to achieve).

So, is that happening? Are compensation pros being measured in a way that aligns them to company objectives?

Survey says…not really.

Facepalm

The same comp pros were asked what metrics they’re measured on in their comp role.

Okay, first and foremost, the *alarming* top response: 41 percent of respondents said they’re not measured at all in their role.

*Screams into a pillow.*

And the misalignment didn’t end there.

Even though an “engaged workforce” was cited by 56 percent of respondents as one of their organizations’ key drivers, that same driver was barely represented (with just 18 percent) in how comp pros are measured.

Clearly, company goals and comp measurement metrics are largely not lining up.

That means countless companies and comp pros are missing out on a huge opportunity to effectively reach their major goals and to better outperform their competitors in the marketplace.

 

WHAT DO COMPENSATION PROS THINK?

So, next question: did the comp pros surveyed feel the current metrics used to assess their performance aligned with key business drivers?

Drum roll, please…

Turns out, half of all comp pros do not feel the metrics used to assess their performance are aligned with the company’s key success factors.

That’s right. HALF.

And, don’t forget, these respondents represent the 59 percent of comp pros who are measured at all!

There’s obviously a huge disconnect between company goals and comp goals.

Aligning objectives is clearly not a universal priority — and that’s a detriment for everyone involved!

Organizations are wasting time and money with metrics that don’t encourage employees to accomplish company goals.

But, bottom line: it’s clear that this reality isn’t being seriously considered by a large number of organizations.

 

BUT WAIT…THERE’S MORE

Are you mildly concerned? Dipping into horrified? 

We get it!

(Just wait till you see why comp professionals think their goals don’t align to company goals…)

If you want to see more results from our survey — plus, solutions on how to close this disconnect for good — download the free report, “How is Comp Measured?”, right now!

GET THE REPORT

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