2. 1
Source: Towers Perrin
Total Rewards – Organizational Framework
Pay Benefits
Training &
Development
Work
Environment
Employee Preferences
Current Marketplace Realities
Mission, Goals, Values
and Strategies
3. 2
Developing a Total Rewards Strategy - The Value Proposition
Manage employment elements between the association and employee
Develop a road map that will:
Identify value-added employment-related factors
Prioritize the association’s human resource investment
Rationalize different components of the employment interface
Communicate the links between business strategy
Forge a shared destiny with employees through the ability to:
Attract, retain, and motivate
Protect, enable, and reward
4. 3
Establishing a Total Rewards Framework
Job Itself
Opportunity for
Growth
Respect
Recognition
Indirect Pay
Direct Pay
Involvement in
Decisions
Source: Aon Consulting
5. 4
Total Rewards – Program Components
Compensation
Fixed pay
Bonus plan
Long term incentives
Benefits
Health and Welfare
Retirement
Paid time off
Personal Development
Performance management
Training and development
Career development
Work Environment
Culture and climate
Work design and flexibility
Quality of work life
Relational Rewards
Transactional Rewards
Direct
Indirect
Source: Hewitt
6. 5
Total Rewards – Focus on Work Life Balance
Helping employees manage their physical and mental health
Helping employees take care of dependents
Making work more flexible
Saving employees’ time
Supporting employees through the financial lifecycle
Creating a supportive culture and environment
Source: New England Employee Benefits Council
8. 7
Compensation Philosophy and Policy
Competitive Market: peer group or survey sources
Competitive stance: position relative to market
Job value determination: internal equity versus market position
Pay mix: fixed versus variable pay
Pay structure: control versus flexibility
Reward focus: group or individual performance
Pay management: degree of participation
9. 8
Market Pricing – Competitive Labor Market Sectors
For-profit
Industry specific
General industry
Not-for-profit
Trade association
Professional
societies
Education
Charitables
Government Other non-profit
Healthcare
Higher education
Think tanks
Social/community
service
Federal
State
Municipal
10. 9
Determining Appropriate Labor Markets – Selection Criteria
Organization
structure
Position roles/
responsibility
Size of annual
operating budget
Type of
not-for-profit
Compensation
philosophy
Focus/mission
11. 10
Geography
Organizatio
n Size
Market/
Sector
Work
Functions
Financial
Operations
•Not-for-profit
•General Industry
•Similar Budget Size
•All Sizes
•National
•Regional
Government
Relations
•Not-for-profit
•Corporate
•Similar Budget Size
•$1-3 Billion
•National
•Regional
Membership
•Survey Peer Group
•Not-for-profit
•Similar Budget Size
•National
•Regional
Meeting &
Conference
Planning
•Not-for-profit
•General Industry
•Similar Budget Size
•National
•Regional
Standards/
Certification
•Not-for-profit
•Similar Budget Size
•National
•Regional
Market Pricing Protocol - Illustrative Work Functions
12. 11
Market Pricing Protocol – Position Level
Position Level Labor Markets Geographic Location
Leadership
Survey Peer Group
Not-for-Profit
National
Management Not-for-Profit Regional and Local
Knowledge Workers/
Individual Contributors
Not-for-Profit
General Industry
Regional and Local
Semi-Technical
Not-for-Profit
General Industry
Local
Administrative Support General Industry Local
13. 12
Market Pricing – Representative Published Survey Sources
Not-for-Profit
Abbott, Langer & Associates, Compensation in Nonprofit Organizations
American Society of Association Executives, Compensation and Benefits Report
Cordom Associates, Salary Survey of Non-Profit Organizations
Greater Washington Society of Association Executives, Compensation and Benefits Survey Report
PRM Consulting, Management Compensation Report of Not-for-Profit Organizations
General
Industry
Business & Legal Reports, Survey of Nonexempt Compensation – Pennsylvania
Mercer Human Resource Consulting
Robert Half International, Finance, Accounting and Management Salary Guide
Watson Wyatt
Survey of Nonexempt Compensation – Pennsylvania
Survey of Exempt Compensation – Northeast/Mid-Atlantic
Corporate Marketing and Communications Survey Report
Information Technology Compensation Survey
Industry Report on Sales and Marketing
Industry Report on Top Management Compensation
Geographic Report on Middle Management Personnel
Geographic Report on Office Personnel
Geographic Report on Professional and Scientific Personnel
14. 13
Market Pricing – Position Matching/Comparability
Step 6
Step 5
Step 4
Step 3
Step 2
Step 1
Organization
comparability
Position
matching
Market adjustment
Premium
Discount
Number of
survey matches
Effective
date of data
Summary
pay statistics
15. 14
Summary Statistics Definitions
25th percentile represents the figure above which 75% of all reported figures fall
Mean represents the average of all figures reported (typically 5% higher than median)
Median represents the figure above and below which half of all reported figures fall
75th percentile represents the figure above which 25% of all reported figures fall
25th
percentile
Mean
Median 75th
percentile
Actual
low
Actual
high
17. 16
About PRM Consulting, Inc.
PRM is a professional services firm specializing in helping not-for-profits maximize
performance and improve organizational efficiency through human capital. We:
Have more than 100 years of combined staff experience
Significant experience in consulting with trade associations, professional
societies and charitables
Benchmark human resource practices across the not-for-profit market
Have a dedicated, full-time staff with roots in major consulting firms
Conduct on-going employee research and compensation levels as well as
practices
