Tips for COOs – #3: Payment Structure

Jan 31, 2018 | 0 comments

Over the years I have seen a lot of title creeping – which means that employees are getting titles that are hugely inflated, which makes them feel like they should be paid a lot more than what their job requires of them.

Whether it’s the VP of Marketing or the Director of Sales, what is essential is that you look at all of the tasks and projects that are on that person’s list (or scorecard). Once you do that, you can apply the proper title for that series of tasks and projects.

Remember, 20 years ago being given a C-suite title meant that you were a significant player in a major company or organization – titles were not handed out as easily as they are now.

So, here are the steps to remember:
  1. Start with listing the person’s tasks/projects
  2. Apply a proper title
  3. Do some research in your industry to find out what people usually are getting paid.

I also like to have three levels in place for every role.

Example: Head of Sales

You would have a director of sales, level one, two and three – and then they would go into VP of sales, level one, two and three. See how this makes the ladder bigger and allows room for growth as responsibilities increase and evolve? Doing this is a great way to establish your compensation and make sure that it’s tied to the roles and projects instead of their title.

This is one of the many things that we have covered at the COO Alliance events, and it continues to be a hot topic of conversation. Click here to apply, and join your tribe today.

 

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Written By Cameron Herold

Written By Cameron Herold

Cameron Herold is known around the world as THE CEO WHISPERER. He is the mastermind behind hundreds of companies’ exponential growth. Cameron’s built a dynamic consultancy: his current clients include a “Big 4” wireless carrier and a monarchy. What do his clients say they like most about him? He isn’t a theory guy—they like that Cameron speaks only from experience. He earned his reputation as the CEO Whisperer by guiding his clients to double their profit and double their revenue in just three years or less. Cameron is a top-rated international speaker and has been paid to speak in 26 countries. He is also the top-rated lecturer at EO/MIT’s Entrepreneurial Masters Program and a powerful and effective speaker at Chief Executive Officer and Chief Operating Officer leadership events around the world.