Compensation Strategic Plan [DRAFT]
2023 - 2025
Vino Design+BuildCompensation Philosophy
The Vino Design+Build compensation program supports the organization’s mission and persistent goals;
Our compensation program is a management tool which, when aligned with an effective communication plan, is designed to support, reinforce and align our values, strategy, operational & financial health, as well as our growth and sustainability plan.
Vino Design+Build compensation program is designed to focus our employee efforts, attract quality employees, retain top performers and motivate our employees to grow. Vino Design and Build we utilize a competency-based pay model, which is a pay structure that compensates employees based on their skill set, knowledge, and experience, not just their job title or position. Our competency-based model rewards high levels of organization value alignment and guiding principles (ADD). We strive to provide a base, equitable salary that strives to meet the market when employees are fully proficient and meeting expectations. We believe that employees consistently developing their competencies (meaning their talents and skills) and showing proficient applicability in the role should be rewarded with higher pay. We will utilize competency-based pay as a way to cross-train and develop our employees to fully meet the strategic goals of the organization.
In alignment with our organization culture, we will strive to communicate openly about the goals of the organization and the design of the compensation program. The compensation process is intended to be equitable and simple so that all employees and managers understand the goals and the outcomes of the process. Vino Design+Build will work hard to administer the compensation program in a manner that is consistent and free of discrimination.
2023 Compensation Strategy
Competitive Set: Vino Design+Build’ compensation strategy will be to set pay grades relative to those in the existing marketplace. By striving to match the pay rates of our competitors (15% of the 50th percentile ex.), Vino Design+Build ensures our compensation structure remains competitive, therefore improving our ability to attract and retain top talent.
Degree of Competitiveness: Vino Design+Build will use the 50th percentile of base salary of local community based organization averages (Purchased Data) as the target for all employee base pay. Individual placement against that target will be based on competency and results via self, peer and leadership assessment.
Variable Pay Target and Design: Vino Design+Build will use factor rate pay; compensation determined by employee performance, also known as practice effectiveness. When employees hit their goals, variable pay is provided as a type of bonus, incentive pay, or commission as a financial incentive.
****Include a statement of what the incentive will be. Merit Increase Options:
1. Compensate individual high performers - anyone meeting 3 and above on their PR evaluation can get more pay. Here is a simplistic example of the merit increase:
2. If the organization meets the annual KPIs, all employees in good standing (we can define that as performing 3+ on their evaluation, etc.) receive a pay increase. Pay increases can be across the board. For example, everyone gets a 1% increase.
3. Department KPIs are met (apply #2 above but only for departments that meet their goal). Individuals in a department that is underperforming do not get a raise.
4. A combination of organizational + individual goals. There can be a weight component on individual vs organizational goals. We have seen a 50/50 split work well.
Implementation:
Vino Design+Build will use a 3 phase compensation strategy implementation approach that can help achieve a balanced and successful pay plan.
Phase Approach:[Example]
Phase 1
2023
Reparative and Compliant
Current Role Pay Analysis and Calibration
Salary/Hourly Classification
Contractor Classification
Wage and Labor Compliance
Phase 2
2024
Cohesive + Competitive
Internal Equity
Strive to Meet at 15% of at the 50th Market
Grade Level Driven
Phase 3
2025
Combined Approach: Competency and Practice Effectiveness Base
Apply Competency and Practice Effectiveness measurables - driven by performance review evaluation.
Address Cost of Living Adjustment (COLA) + Benefits