Case Study

Capacity Provider Compensation and Operating Model Alignment

High-growth capacity provider realigns compensation design and operating model to maximize employee productivity after business, technology, and people investments.

Executive Summary

Industry: Freight Brokerage

Services: TL, LTL, IMDL, and Expedited

Revenue: $70MM

Employees: 55

This third-party capacity provider grew tremendously over several years and continues to re-invest in the business,  technology infrastructure, and people. The Operating Model Alignment and Compensation Design engagement was intended to align their compensation design with their operating model to maximize employee productivity.

Challenge

Goal: Align compensation design and operating model to maximize employee productivity from prior strategic investments.

Issue:

Align compensation structure with new operations and roles with particular attention to the commission design

Solution

  • Defined the Company’s vision, objectives for the engagement, and requirements for the Company’s future-state compensation plan
  • Designed compensation structure, inclusive of base salaries, variable commission, and performance KPIs
  • Developed transition plan (change activities, calendar outline, communication templates, & training collateral) for the Company to follow to maximize RoI from changes

Processes

Compensation

Approach

Leadership Vision Workshop

Hosted Leadership Workshop to understand the company’s future state business strategy, vision, and goals for responsibilities and KPIs

Data Gathering & Benchmarking

Researched and benchmarked comparable industry competitors and their employee network to uncover industry-standard base salaries, variable compensation ranges, and total annual compensation

Iteration and Refinement

Hosted review sessions with the SLT to iterate and refine initial compensation designs

Change Management

Utilized best practices for effective change management to increase the likelihood of buy-in across all stakeholders

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