Prosper Consulting LLC

What makes someone great at compensation? It’s not just about crunching numbers or pulling survey data. It’s deeper than that and more nuanced. The best compensation professionals I've worked with over the years share a rare blend of traits that you don’t often find in a single person. They’re researchers and part private detectives. They are relentless in pursuit of truth. They know how to dig. They don’t stop at surface-level pay data; they triangulate between salary surveys, internal equity, economic and labor market trends, as well as pay transparency expectations. They’re skeptics but the good kind. Not cynical, but clear-eyed and critical. A good skeptic doesn’t take things at face value. They ask, “What’s the evidence?” They seek strong support before accepting a conclusion, even when it's the convenient one. But being right isn’t enough. They also need to influence. Think salesperson, but with integrity. They translate complex data into stories that resonate with leaders and employees. They don’t just present a comp recommendation. They build the case for it. These pros have a bias toward fact-based decisions, even when the facts are uncomfortable. They advocate for equity, fairness, and consistency, grounded in both data and sound judgment. And speaking of judgment, they’ve got it in spades. They understand human behavior, organizational politics, and what levers to pull (or leave alone). They know when to flex and when to hold the line. They are storytellers who turn compensation into a strategic narrative. They can explain not just “how much” but why, how it aligns with market data, and what it means to your employees. One thing they’re not? People pleasers. In this work, you have to say “no” to requests that don’t align with standards, to one-off exceptions that create inequities, to reactive decisions that undermine consistent pay decisions. It takes courage and clarity to be the voice of reason in a room full of urgency. So next time you're hiring for a comp role or looking to grow in one look beyond Excel and job descriptions. Seek out detective-like researchers, thoughtful skeptics, persuasive storytellers, critical thinkers, and principled decision-makers. That’s where greatness exists in the compensation profession. It’s rare and valuable. What do you think makes someone great at compensation? I'd love to hear your take so share your thoughts in the comments. #Compensation #TotalRewards #PayEquity #HR #PayTransparency #JobArchitecture #PeopleAnalytics #Rewards #CompensationConsultant #Leadership #Storytelling #HumanResources #FutureOfWork #FairPay https://lnkd.in/g85_66mu

Handling High Salary Expectations from Candidates Employers: How do you respond when a candidate asks for more than you’re willing to pay? There are a few ways to approach this as an employer or hiring manager. One option: move on. The candidate priced themselves out of the role, and you find someone else whose expectations are more in line with your offer. Another approach: be transparent. Let the candidate know what you are willing to pay (base salary, incentives, and benefits) and give them a chance to respond. They may have asked for more simply because they didn’t know your range, not because they’re unwilling to flex. And then, there’s storytelling. Here’s one: my neighbor put his house up for sale and priced it too high. How did he know? He had ten showings and zero offers. But he was reluctant to reduce the price. Six months later, the house is still for sale and only now is he considering a price cut. This is what I sometimes see from candidates. They’re not getting interviews or not getting offers, and they think it’s a company problem. Sometimes it is. But sometimes, the pay they expect is just too high for the market. Compensation varies by industry, location, company size, and by the employer’s compensation philosophy. A large tech company with equity incentives and a generous bonus pool may pay very differently than a nonprofit or startup. So, here’s my advice to job seekers: Don’t overprice yourself out of opportunities. Use the many free compensation resources out there (see link in comments) to benchmark your pay expectations. And to employers: Transparency is powerful. A respectful conversation about the pay range can keep the door open for great candidates who just needed more information to align. And post a realistic base salary range and description of incentives as well as benefits on all your job openings. #compensation #recruiting #paytransparency #hiring #jobsearch #salarynegotiation #careeradvice #employerbranding #pay #compensationconsultant #hr #humanresources #paynegotiation #employervalueproposition https://lnkd.in/gc-jpmx3

How to Address Big Tech Pay Comparisons Employee Question: “Why don’t we get paid like engineers at Alphabet, Amazon, Apple, Meta, or Microsoft?” If you’re an HR Leader at a startup or mid-sized tech company, chances are you’ve heard this question and felt the tension behind it. It’s a fair question, especially in an era of pay transparency and readily available comp data. But it’s also an incomplete comparison. Here’s how to respond thoughtfully and transparently: Step 1 - Start with Education, Not Defensiveness ·       Employees typically raise this because they’re trying to understand their value. Meet them with facts, not frustration. Help them understand how compensation is built around more than just job title or skills. It is also influenced by company size, business model, funding stage, revenue, and internal equity. Step 2 - Comp Strategy Reflects Business Reality ·       The big tech companies operate on a different economic scale. Their revenues, margins, and market caps support more aggressive compensation practices especially in long-term incentives. Comparing your pay directly to theirs is like comparing a seed-stage startup’s burn rate to Apple’s cash reserves. It is not apples to apples. Step 3 - Total Rewards, Not Just Base Pay ·       Smaller companies may not compete dollar-for-dollar on base salary, but they often offer broader upside. Think of things like faster career growth, more impactful work, early equity with high multiple potential, and a chance to shape company culture. That’s value that can’t always be quantified in a spreadsheet. Step 4 - Market Positioning is a Strategic Choice ·       Compensation philosophy matters. Some companies target the 75th percentile of the market, others the 50th. Smaller firms benchmark compensation against peer groups that align more closely with their stage and sector instead of trillion-dollar giants. Being transparent about why and how you benchmark pay builds credibility and trust. Step 5 - Internal Equity Matters ·       Pay isn’t just about matching the external market. It is also about fairness within your company. If one person’s comp is tethered to big tech firm pay rates and others aren’t, you risk internal misalignment, morale issues, and even legal exposure. Consistency = fairness. Step 6 - Use the Conversation as a Trust-Building Moment ·       You don’t have to win the comparison. You just need to be transparent, empathetic, and consistent. Help employees see the full picture of their compensation and why the decisions you make are aligned with their best interests and that of their employer. Pay comparisons aren’t going away. But they are opportunities to educate employees about the appropriate comparisons you make as an employer. If you're navigating these discussions in your org, I’d love to hear how you’ve approached it. What’s worked for you? #compensation #startups #tech #pay #hr #paytransparency #fairpay #compensationconsultant #equity

Pay Conversations: Emotional, Messy, but Manageable Talking about pay can be awkward, emotional, and stressful for both employees and managers. These discussions often involve fairness, competitiveness, contributions, and financial security, which can trigger frustration, anxiety, or even excitement. The more you prepare, the better the conversation will be. How do you manage emotions in pay conversations? Whether you're asking for a raise or responding to a request, emotions can run high. Here’s how to stay in control: ·      Pause & Reflect – Acknowledge your emotions. Are you feeling nervous? Defensive? Recognizing them and naming them can prevent them from hijacking the discussion. ·      Focus on Facts, Not Feelings – Stick to objective data: market benchmarks, performance results, and business context. ·      Take a Breath – If things get heated, slow down. A deep breath can reset your mindset and the pace of the discussion. How should I plan for a productive conversation? Compensation discussions go best when both sides are prepared. For employees that means: ·      Do Your Research – Know your market value but be mindful of online data limitations. Your employer has more robust data than you do. ·      Highlight Your Impact – Be ready to discuss your contributions in relation to your company’s biggest goals. Compensation decisions rely heavily on your results. ·      Have a Plan B – If a raise isn’t possible, consider asking for professional development, flexible work arrangements, mentorship, or leadership opportunities. ·      Ask for Clarity: “Can we set clear goals for a salary increase in the future?” For managers that means: ·      Be Transparent – Explain how pay decisions are made. If you're unsure, ask HR. Ambiguity leads to distrust. ·      Prepare for Tough Questions – Employees may ask why they didn’t get a raise or want more than they received. Have clear, data-backed responses. Don’t guess. Consult HR first. ·      Show Empathy – Even if the answer is “not right now,” acknowledge their request and discuss future opportunities. Listen more than you talk. Ask clarifying questions to ensure the employee feels heard. Practice makes perfect and confidence comes with preparation and repetition: 1.      Role-play with a mentor or colleague 2.      Rehearse key points out loud 3.      Anticipate tough questions and write your talking points in advance Compensation conversations aren’t just about numbers. They’re about trust, recognition, and clarity. The more thoughtful and prepared you are, the better the outcome. Have you ever had a tough pay conversation? What helped you navigate it successfully? What do you wish you had done differently? #Compensation #HR #Leadership #CareerGrowth #PayTransparency #PayEquity #FairPay #PayNegotiation #HumanResources #Communications #compensationconsultant #payraise https://lnkd.in/g9SgQg_b

The Problem with Fundraiser Incentives While incentive plans might seem like a natural fit for fundraising roles, there are several reasons why they can be problematic. Here are the top five reasons why putting fundraisers on an incentive plan is generally not advisable: 1. Misalignment with Donor Ethics and Expectations (a) Many donors expect their contributions to support the mission, not individual compensation. (b) Tying pay to fundraising performance can create ethical concerns, particularly if donors feel their gifts are being used to enrich individuals rather than support the cause. (c) Transparency issues may arise if donors perceive that fundraisers have personal financial incentives in securing gifts. 2. Focus on Short-Term Gains Over Long-Term Relationships (a) Successful fundraising relies on relationship-building, stewardship, and cultivating major donors over time. (b) Incentive-driven fundraisers may push for immediate donations rather than fostering sustainable donor engagement. (c) This short-term focus can harm an organization’s long-term revenue strategy. 3. Risk of Unintended Consequences and Perverse Incentives (a) Incentives might encourage fundraisers to prioritize high-dollar gifts over diversifying the donor base. (b) Some may overpromise results, leading to unrealistic expectations or failed donor commitments. (c) It could lead to high-pressure tactics, damaging the organization’s reputation. 4. Challenges with Fair and Equitable Measurement (a) Fundraising success often depends on external factors (e.g., economic conditions, donor capacity, organizational reputation). (b) It’s difficult to measure an individual’s direct impact versus team or leadership contributions. (c) If the incentive structure isn’t equitable, it can create resentment among team members who play support roles. 5. Potential Legal and Compliance Issues (a) Some nonprofit watchdog groups (e.g., the Association of Fundraising Professionals) discourage or prohibit commission-based fundraising. (b) The IRS frowns upon excessive fundraising-based compensation, as it could risk a nonprofit organization’s tax-exempt status. (c) Depending on the structure, incentive pay could violate ethical standards or create conflicts of interest. Alternative Approaches - Instead of incentive pay, consider: 1.    Offering competitive base salaries with mission-driven incentives (e.g., retention bonuses, professional development support). 2.    Recognizing fundraisers through non-monetary rewards (e.g., career growth, public acknowledgment). 3.    Aligning compensation with overall organizational success rather than individual fundraising results. #NonprofitLeadership #FundraisingEthics #CompensationStrategy #DonorTrust #PayEquity #NonprofitFinance #HR #FundraisingTips #TotalRewards #MissionDriven #compensation #hr #humanresources #compensationconsultant #incentives https://shorturl.at/YE61n

Designing a Sales Compensation Plan: Who to Include & How to Get It Right A well-designed sales compensation plan isn’t just about paying reps. It’s about aligning incentives with business goals, driving performance, and ensuring scalability. Too often, companies design plans in a silo, leading to unintended behaviors, missed revenue targets, or poor rep retention. So, how do you get it right? And who should be at the table? 1. Align Compensation with Strategy Before structuring payouts, define your go-to-market (GTM) strategy: ✅ What are your key sales objectives? (Revenue growth, margin protection, new logo acquisition?) ✅ What behaviors do you want to drive? (Land-and-expand, multi-year deals, product mix?) ✅ What sales motions do you support? (Enterprise vs. SMB, inbound vs. outbound?) Your plan should reinforce these objectives and not work against them. If ARR is a priority, but reps are incentivized to sell one-time deals, there’s a misalignment. 2. Bring the Right People to the Table Sales comp impacts multiple functions, include key stakeholders: 🔹 Sales Leadership – Ensures the plan drives rep motivation & performance. 🔹 Finance – Validates cost, margins & financial sustainability. 🔹 HR/Comp Team – Benchmarks against market standards & ensures fairness. 🔹 RevOps/Sales Ops – Models plan impact & ensures smooth execution. 🔹 Marketing – If lead generation or pipeline contribution affects comp. 🔹 Product – If incentives are tied to product adoption. 🔹 Legal – Ensures compliance & clarity in plan documents. 🔹 Accounting – Confirms accruals are in place before payouts. 3. Design for Simplicity & Transparency Comp plans should be easy to understand: 📌 Base vs. variable mix – Competitive & motivating? 📌 Accelerators – Do they reward top performers? 📌 Caps & Clawbacks – Encourage the right selling behaviors? 📌 Payout timing – Frequent enough to keep reps engaged? 4. Model & Test the Plan * Before rollout, model different scenarios: * Does it work for top, mid, and low performers? * Does it support ramping for new hires? * Are OTEs (on-target earnings) achievable based on past performance? 5. Communicate & Iterate A great plan isn’t just launched. It’s reinforced. Train managers, answer rep questions, and monitor them for unintended consequences. Be ready to adjust based on performance data. Final Thought: Sales compensation is a powerful tool—but only when designed with cross-functional input. The right plan ensures alignment, motivation, and long-term scalability. What’s one lesson you’ve learned from past comp plan designs? #salescompensation #commissions #compensation #sales #incentives #variablepay #HR #salesleadership #compensationconsultant #humanresources #pay https://rb.gy/d5flps

Spot Bonuses: A Powerful Tool for Employee Recognition In today’s job market, retaining top talent and boosting engagement is critical. One underutilized tool? Spot bonuses are discretionary, immediate rewards for outstanding contributions. What Are Spot Bonuses? Unlike annual bonuses, spot bonuses are one-time, unplanned monetary awards given in real-time for exceptional performance, teamwork, innovation, or embodying company values. Why Use Spot Bonuses? 1 - Immediate Reinforcement: Recognizing employees instantly strengthens positive behaviors. 2 - Boosts Engagement and Motivation: Employees feel valued, increasing commitment. 3 - Flexible and Customizable: Adjust amounts, frequency, and criteria as needed. 4 - Fosters a Culture of Recognition: Encourages ongoing appreciation and alignment with company goals. Best Practices for Success 1 - Set Clear Guidelines: Define qualifying and impactful achievements to ensure fairness. 2 - Be Timely: Give bonuses immediately after the achievement. 3 - Communicate the Why: Explain the recognition to enhance its impact. 4 - Go Beyond Cash: Gift cards, extra time off, or public praise can be meaningful. 5 - Ensure Fairness: Make bonuses available to all employees based on merit. Addressing Challenges 1 - Budget Limits: Allocate dedicated funds and track spending. 2 - Perceived Favoritism: Train managers and set transparent criteria. 3 - Overuse Leading to Expectations: Keep bonuses a surprise, not an entitlement. Final Thoughts Spot bonuses are a simple yet powerful way to boost morale and reinforce company values. If your company isn’t using them yet, now may be the time to start. Does your organization offer spot bonuses? #spotbonuses #compensation #reweards #payequity #fairpay #paytransparency #rewards #hr #humanresources #compensationconsultant #recognition #engagement #motivation #bonus #retention https://lnkd.in/g54zw-wE

Retention Bonuses: When, Why, and How Retention bonuses are a powerful tool, but only when used strategically. If you’re throwing money at employees hoping they’ll stay, you’re missing the mark. A well-designed retention bonus should align with business needs, be competitive, and have clear terms. When Should You Offer a Retention Bonus? Here are three common scenarios where a retention bonus makes sense: 1 - Critical Business Need – A key project, product launch, or transition period (such as a merger or system implementation) requires continuity. Losing critical talent mid-stream could derail success. 2 - Leadership or Specialized Skill Risk – If a senior leader or highly skilled employee is at risk of leaving and the market is aggressively pursuing them, a retention bonus can buy time for succession planning or skill transfer. 3 - Market Disruption & Competition – In high-demand fields (e.g., tech, healthcare, finance), competitors may be offering aggressive hiring bonuses. A retention incentive can level the playing field and reduce turnover. How Much Should You Pay? A general rule of thumb I use: To retain someone for one year, pay them 100% of their target annual bonus. So, if you need to retain someone for three years, the formula is: Annual Base Salary x % Target Bonus x 3 Years = Retention Bonus Amount Example: $100,000 (Base Salary) x 10% (Target Bonus) = $10,000 per year x 3 years = $30,000 retention bonus Structuring the Payout A one-time lump sum at the end of the retention period? Risky. Employees might still leave early. Instead, consider: 1 - Multiple payments—e.g., annually or at key milestones with the final payment being larger than the earlier payments 2 - Clawbacks—if they leave before the agreed period 3 - Clear agreements—always have employees sign a Retention Agreement outlining terms, conditions, and milestones Retention bonuses can be highly effective, but only if structured correctly. Have you used them successfully? What’s worked (or not) in your experience? #HR #Compensation #Retention #TotalRewards #Leadership #RetentionStrategy #RetentionBonus #Pay #CompensationConsultant https://rb.gy/05w4hg

Top 10 Global Pay Laws Employers and Employees Must Know Many countries have enacted laws to regulate pay, ensure fair wages, and promote pay equity. Here are 10 of the most significant pay-related laws outside of the U.S.: 1. Equal Pay Act (UK) --> Requires employers to provide equal pay for equal work between men and women. Enforced through the Equality Act 2010. 2. European Union Pay Transparency Directive (EU) Introduces strict pay transparency rules, including pay reporting and pay gap analysis. Mandates salary range disclosures in job postings. 3. Minimum Wages Act (India) --> Sets minimum wage standards for different industries and skill levels. Enforced by both state and central governments. 4. Fair Work Act (Australia) --> Establishes the National Minimum Wage and regulates workplace pay conditions. Includes provisions for equal pay and awards-based pay systems. 5. Employment Equality Act (Ireland) --> Prohibits pay discrimination based on gender, age, disability, race, and other factors. Supports pay transparency initiatives. 6. Labour Standards Act (Japan) --> Defines rules for wages, overtime pay, and minimum wage requirements. Ensures premium pay for overtime and night work. 7. Equal Pay Act (Canada - Federal and Provincial Laws) --> Federal and provincial laws require equal pay for equal work. Ontario, Quebec, and British Columbia have strong pay equity laws. 8. General Labour Law (Brazil) --> Governs wage policies, overtime rules, and holiday pay. Includes specific provisions for equal pay and worker benefits. 9. Pay Equity Act (Canada - Federal Level) --> Requires proactive measures to close gender pay gaps in federally regulated workplaces. Applies to employers with 10+ employees. 10. Employment Ordinance (Hong Kong) --> Defines statutory minimum wage and other pay-related labor rights. Covers end-of-year payments, severance pay, and long service payments. These laws reflect global efforts to promote fair compensation, wage equity, and transparency across different labor markets. #compliance #pay #compensation #payequity #paytransparency #fairpay #paygaps #minimumwage #compensationconsultant #hr #humanresources https://shorturl.at/L8Q6L

Top 10 U.S. Pay Laws Employers and Employees Must Know Here are the top 10 U.S. laws related to pay that govern wages, salaries, pay equity, and compensation practices: 1. Fair Labor Standards Act (FLSA) (1938) * Establishes a federal minimum wage, overtime pay, and child labor protections. * Defines exempt vs. non-exempt employee classifications. 2. Equal Pay Act (EPA) (1963) * Requires equal pay for equal work regardless of gender. * Jobs must be substantially equal in skill, effort, and responsibility. 3. Civil Rights Act – Title VII (1964) * Prohibits pay discrimination based on race, color, religion, sex, or national origin. * Covers compensation, hiring, promotions, and other employment terms. 4. Age Discrimination in Employment Act (ADEA) (1967) * Protects workers 40 years and older from pay and employment discrimination. 5. Americans with Disabilities Act (ADA) (1990) * Prohibits pay discrimination against qualified individuals with disabilities. 6. Family and Medical Leave Act (FMLA) (1993) * Provides unpaid, job-protected leave for qualifying medical and family reasons. * Protects employees from retaliation for taking leave. 7. Lilly Ledbetter Fair Pay Act (2009) * Expands the statute of limitations for filing pay discrimination claims. * Each discriminatory paycheck resets the time limit for filing a claim. 8. National Labor Relations Act (NLRA) (1935) * Protects employees’ rights to discuss wages and organize for better pay. * Prevents employers from retaliating against employees for pay-related discussions. 9. Davis-Bacon Act (1931) & Related Prevailing Wage Laws * Requires federal contractors to pay prevailing wages to workers on government-funded projects. 10. State & Local Pay Transparency & Equity Laws * Includes laws like California’s Pay Transparency Law (SB 1162) and New York’s Pay Equity Law. * Many states require wage range disclosure and prohibit salary history inquiries. #pay #compensation #compliance #hr #humanresources #payequity #paytransparency #fairpay #equalpay #minimumwage #prevailingwage #fmla http://bit.ly/41EqdJi