When one considers the factors that lead to employee engagement, and the role that compensation and benefits play, it’s helpful to use the illustration of a building. One might think of the contractual factors (compensation) as the foundation and the psychological and emotional factors as the structure.

​

When one walks into a building, they rarely think about the foundation. They are drawn to the design and the functionality.  Motivated to use a building comes because of the design and the intended function, but the design and function rests on the foundation. The design of the foundation determines what can be created above, and if it is of poor quality or of inadequate design, the building will not prove useful or last. It must be of an adequate quality, size, and configuration to support the overall structure and fulfill the building's purpose. 

​

Compensation is the foundation of employee engagement and motivation. What an employee experiences at work (the psychological factors) and what they feel (the emotional factors) are front and center in the employee’s mind, but these high motivators are only meaningful if the foundation is adequate. The basic reason that most people work is to provide for their needs and the needs of their family, so what one receives from work in the form of compensation and benefits must be adequate for their needs. Once the foundation is determined to be adequate, the focus turns to the other things, like fulfillment and the value we place on relationships.

​

Another key aspect to a building is the way in which a structure can be tied into the foundation. A building might be designed to house a large overhead crane, or it may be designed to create large open spaces for events. These two buildings serve very different purposes, but in both situations the foundation must be designed to allow the building materials to tie in and support the structure needed above it. In the same way, psychological and emotional motivators must tie into the compensation and benefit foundation. For example, individual performance planning that is tied to key organizational strategies is a key psychological factor. When performance planning is further tied to total compensation (the foundation) the motivational factors become linked and are exponentially more powerful than a single element.

​

Just as a building foundation must be built prior to the structure, well thought out compensation planning should be considered in all planning activities. Total compensation planning involves several elements; pay, insurance benefits, time off, and bonus programs.

​

Solutions

S. Miller Consulting can guide organizations through the design of total compensation programs. Our unique approach involves the integration of compensation and job analysis into the other key factors related to organizational success.