Why Should You Hire a Compensation Consultant?

At CompWise Consulting, we believe in the value a compensation consulting firm can bring to your organization. Here are five compelling reasons to consider partnering with a consultant.

Five Reasons to Hire a Compensation Consultant

Time Factor: Your team juggles countless responsibilities and puts out fires every day. A consultant can dedicate their full attention to your project, ensuring it's completed on time without the distractions you constantly face. They can focus on your needs from start to finish.
Experience: A consultant brings a wealth of experience from working with a diverse range of clients and industries. Instead of your team having to "reinvent the wheel," a consultant can quickly apply proven solutions and best practices to meet your specific needs.
Objectivity: An external consultant offers an unbiased perspective. They will propose solutions that are the best fit for your company’s unique issues and administrative capabilities, not those that are simply the easiest or most profitable for the firm. Be cautious of firms that offer "one-size-fits-all" templates; effective consultants create customized solutions.
Cost-Benefit: When an in-house project fails, the costs can be high. You risk losing valuable time, wasting internal resources, and damaging credibility with your employees. A consultant can efficiently and effectively develop sound solutions, saving you from these costly failures.
Availability: Even highly qualified internal professionals need extra support from time to time. Consultants have the specialized resources, time, and experience to supplement your team's skills, filling in gaps and providing expert assistance precisely when you need it.

Six Questions to Ask When Hiring a Consultant

Once you've decided to hire an outside compensation consultant, it's crucial to ask the right questions to find the perfect partner.

Responsiveness: How quickly did the consultant return your call? How long did it take for them to prepare a proposal? If a firm is slow to respond before they've been hired, it's a good sign that they won't be much quicker once your project is underway.
Experience: Do they have specific experience in your industry? Are their solutions "canned," or are they tailored to your company's unique culture and management style? While industry experience is helpful, creativity from a broader perspective often results in more progressive and effective programs. Focus on finding a firm with deep compensation expertise.
Cost: Does the proposal's cost align with the approach presented? When comparing bids, make sure you're comparing identical proposals. A price that is too low might be a "loss-leader," while a price that is too high may mean you're paying for their overhead and a steep learning curve.
Deliverables: What will you receive at the end of the project? Will you get high-level concepts or the actual finished materials, documentation, and formulas you need to move forward? It’s essential to clarify what deliverables you will receive so you have all the tools necessary to use the new program effectively.
Commitment: Will the consultant be available to assist you in the future? A good consultant will provide the tools and training you need to manage your programs on your own. However, they should also be available for support when you need it. A strong working relationship can be leveraged for future initiatives.
Relationship: Who will actually do the work? Will the person who sells you the project be the same person who carries it out? The person you speak with may be a salesperson and not the expert who will be directly involved with your project. Be sure to ask who will be your main point of contact and who will be doing the work.

We hope you'll keep CompWise Consulting in mind as a resource when you're ready to hire an outside expert.

Ready to take the next step toward a better compensation strategy? Contact us to learn more.