Case Study
Capacity Provider Compensation and Operating Model Alignment
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
