Imagine being a member of a Compensation team that finds out about bonus changes at the same time as all the other employees. If you have been in this situation, you know how challenging it can be.
When changes to bonus or long-term incentive plans are made without input from HR or Compensation, it creates ripple effects.
· Education and training materials must be urgently revised.
· Clarifying communications need to be written and sent.
· Systems must be modified.
· Bonus payout and LTI delivery timelines must be revised.
· And sometimes, the new plan doesn’t align with legal requirements, competitive pay data, or pay equity standards.
Actions like this can also contradict a company’s stated values. When companies say we value transparency and collaboration, and then not demonstrate that when revising a bonus or LTI plan it is disappointing and frustrating.
It’s not that leaders mean to sideline Compensation. Often, they're focused on solving a pressing business problem quickly. But without bringing in the right partners early, even well-intentioned changes can miss the mark or worse, backfire.
So, how do we shift this dynamic?
· Build relationships before there’s a need. When executives understand the value Compensation brings, from market insights to risk mitigation, they’re far more likely to bring us in early.
· Educate HRBPs. They’re often closer to the business and hear about reorganizations or pay program shifts first. Compensation teams should attend HRBP meetings, share their expertise, and provide real examples of how early partnership avoids downstream issues.
· Make it easy to collaborate. Position your Compensation team not as gatekeepers, but as strategic enablers who help leaders achieve their goals.
The best Compensation teams aren’t just technical experts. They’re trusted advisors. That trust starts with listening, partnering to develop solutions to business problems, and communicating the impact of pay programs on key strategic priorities.
Keep building those relationships and be visible to the decision makers so you can make a difference.
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