Risks

Companies that fail to follow Best Practices for companywide compensation strategies face the following risks:

• Failure to attract and retain the best employees.
• Failure to grow and stay competitive in the marketplace.
• Going through an acquisition without a compensation infrastructure in place, which can cost employees millions of dollars.
  
• Lost opportunities for wealth creation throughout the company.
  

Opportunities

Companies that follow Best Practices for companywide compensation strategies have these opportunities:

• High employee retention, which brings stability to your company. When you have a stable employee base, that’s when your company can really grow and thrive. Constant turnover builds a lot of instability and it negatively affects productivity.
• Attracting the best employees. In very competitive environments, such the technology and life sciences industries, finding qualified, talented applicants is challenging. In today’s market there’s always someplace else for people to go. Even if you have the most amazing business ideas, if you don’t have a solid compensation infrastructure in place, people aren’t going to join your company.
• Company growth. Getting the best employees into your company and retaining them is absolutely critical to a company’s growth.
• Wealth creation. One or two percent in compensation left on the table can add up to millions of dollars for everybody at the company. It is painful to see missed opportunities. The compensation infrastructure has to be in place before there's the prospect of an IPO or an acquisition.

What all this means is that you will produce more, you will have more revenue, your product will be more successful. Ultimately, it comes down to the bottom line. You’re going to have better results.