Practice Management Working to help your team win

Invesco Global Consulting
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Team Compensation Structure

Key takeaways

  • The challenge:

    Financial professional teams and practices are constantly evolving, often posing a challenge for making compensation decisions.

  • Our solution:

    Our approach to compensation and rewarding talent rests on four consistent virtues that may be implemented with any team.

  • Our program:

    Our model looks at the three critical areas of your people strategy — how you reward, manage, and retain talent.

The challenge: Creating a compensation model

When considering your compensation design, we believe it should be dynamic, but it should also be anchored within a structure comprising four virtues:

  • Objective: Remove subjectivity so the requirements of your team’s roles and how to be successful in them are clear.
  • Measurable: Determine how, and how often, the work will be measured. Over time, it’s not unusual for role objectives and measures of success to change as needed.
  • Transparent: Avoid taking any kind of black box approach that keeps a team member from clearly understanding how their compensation is determined.
  • Defensible: Work to ensure your team’s objectives and measure of success are appropriate, transparent, and fair.

Our solution: The financial professional compensation model 

Once an appropriate structure is established, we often suggest a compensation model we call “yours, mine, and ours.” In a 12-to-14-month test, you and your prospective partner(s) test drive your new structure without disrupting your respective practices. This is designed to work over two phases:

  • Phase 1: Your practice opens a joint production account, seeded with all-new business acquired together in the new structure and some existing business the new potential partner may service and attempt to grow. Your team will work with legacy clients as you anticipate working with new clients once you become a fully integrated team.
  • Phase 2: After 12-24 months, you and your team may find synergies that bring your entire business together and create splits that replicate each employee’s gross revenue prior to the merger. From here, an appropriate compensation framework may be reborn.

Visit pages 3 and 4 in our “Crafting a Winning People Strategy Toolkit” brochure1 to find out more about our ideas for compensation design and structure, and read the full brochure to see how it might help you grow your business.

Ready to set your team up for success?

  • 1

    Ask your Invesco Market Leader for IGC-CWP-BRO-1-E-FF or download it from the link herein.

Practice Management Center