Part 11: High-Level Benchmarking

by | Jun 7, 2021

By: KHA Consulting Team

The following is part 11 of a multi-part series on The KHA Way, KHA Management Consulting’s Integrated Service Offering. This blog series includes the benefits of using KHA Management Consulting Services and the components included.

After you have internal roles and job descriptions spelled out and titles have been aligned commensurately, it can be helpful to know what market pay is for each of those roles in an organization, in your context. This can include:

  • Geographical
  • Industry-focused
  • Size-related

In this process, what other industry insights might be helpful to inform your business model and how you go to market? We will help you identify good benchmarking resources for both your business and employees. We also will begin to probe into what makes your business unique and what you think sets you apart from your competitors, both those currently in the market and those to follow.

Our compensation benchmarking analysis is typically performed using no less than three sources of information. Some of these sources are less flexible and less specific, but generally we identify two very strong resources that are specific to your industry to give the user of the analysis (you) clarity on what market is. Before the benchmarking process begins, we will meet with you and possibly another leader or two from your team that will help set the criteria. KHA will then research, as needed, and recommend potential options as well as find the proposed resources to use and purchase that information on your behalf.

The benchmarking performance is involved and requires some in depth analysis to be performed. Some sources require querying while others have what-if tools built in. Market adjustments are either explicit or implicit; and we evaluate both ultimately making a recommendation for each scoped in role. Finally, a deliverable is prepared and presented to you and your management team. Any assumptions we used are reviewed and may need tweaking depending on management preference for the context weights we have used in our analysis.

Your management team is now armed with market benchmarking information that will help them feel confident in what their employees are making and can make. Later in this series, we will focus a discussion on incentive compensation planning. In our Personnel Positioning phase, we have:

  • Redesigned your organizational chart
  • Determined high-level organization-wide metrics to consider
  • Developed success criteria for each role
  • Defined job descriptions with roles and responsibilities
  • Performed high level compensation benchmarking.

All these tools are helpful; however, they do not abdicate the responsibility for management to lead. Next up is our series on Corporate Strategy where we will walk through vision casting, strategic planning, and setting targets for your teams to achieve, effectively driving your organization forward.

At KHA Management Consultants, we work with mid-market industry leaders to identify what makes the organization, its stakeholders, and its’ employees tick. We facilitate the Personnel Positioning process with your organization’s key constituents to ensure buy-in, ownership, and a new way of thinking about the organization and its stakeholders amongst all levels. From a resource perspective, we primarily use our unmatched experience but also tap into the top-level resources such as those made available by Harvard Business Review, Relevant Strategic Management Authors, and MentorPlus. Some of those materials, frameworks, and lessons have been used in authoring this series.

KHA Management Consultants, the consulting department of KHA Accountants, PLLC, based in Flower Mound, Texas, is always looking for opportunities to work with key clients ready to take their organization to the next level. If you have a desire to improve, take the first step toward success with the strategic management experts, and contact us at 972-221-2500.

Business Travel Expenses: Per Diem vs Actual Expenses

If your employees travel for work purposes, it’s important to understand the various methods of tracking and substantiating travel expenses so that you can maintain accurate records, control costs, and take advantage of potential tax benefits. Watch this video to learn about business travel expenses, per diem allowances, and how they affect employees and employers.

6 Misconceptions of a Revocable Living Trust

A revocable living trust, or RLT, offers many benefits, including probate avoidance, privacy, and flexibility in managing assets during one’s life, incapacity, and death. However, despite their popularity as an estate planning tool, there are many misconceptions surrounding revocable trusts that lead to confusion and misunderstandings. Watch this video to learn about the top six misconceptions.

IRS Dirty Dozen Top Tax Scams To Avoid

Each year, the Internal Revenue Service publishes its annual Dirty Dozen list of tax scams highlighting various schemes that put taxpayers and their financial well-being at risk. In this video, we’ll provide an overview of five of the top scams on the list.