Experts in Compensation Plan Design
We are committed to providing the best compensation design services, custom and industry surveys, and implementation support to companies who want to strategically align compensation with organizational goals.
Third-Party Logistics (3PL) Compensation
Proud Members of
3PL Compensation
“3PL” is a highly generic term that really means “any 3rd party logistics intermediary” – from domestic Truckload (TL) freight brokers to freight forwarders. What we refer to here is the more technology enabled play that has existed for years on the LTL (Less than Truckload) side, and which is becoming more common on the TL side as more software-oriented companies seek to automate the carrier and/or load selection process for Truckload (TL) freight. Prosperio has helped businesses with heavily automated freight overhaul excessively lucrative plans that were paying as if they were all TL spot market freight. We have also worked with companies that have a mix of both contracted/fully managed transportation as well as TL spot market freight.
Different Roles Need Different Plans
You must not pay for these different types of business the same way. If you do, you will be overpaying on the managed transportation side and/or underpaying on the brokerage side. These are very different animals, from customer acquisition all the way through account management. Prosperio has worked alongside some of the founders in managed transportation (and many of their offshoots); therefore, we have a deep understanding of the complexities of this industry.
SOME QUESTIONS TO CONSIDER:
Are you paying for automated freight on a commission per load basis?
Is your sales rep being paid on deals they sold several years ago without any significant continuing involvement?
Do you have ALL of the LTL freight from some customers, and some of the TL freight from these same customers?
When a new account comes on board, do you feel like Santa Claus when deciding which account team gets the customer because it will automatically drive up their pay?
Are you unable to move a customer from one account team to another because of how it will affect each teams’ compensation?
Are your sales reps unaware of what “good” looks like? Meaning, do they decide how much money they want to make each year and only sell to that level?
Is there considerable disagreement among your leadership team about compensation because of their different backgrounds?
If the answers to any number of these questions are “yes” – please give us a call. We can help.
Common Project Types
EXPRESS PROJECT
When your needs span several roles, but you have only a few people, our Express Project is your best bet. We’ll spend time with you and your senior leaders understanding your business and working alongside you to develop the plans as quickly as possible. We’ve successfully executed hundreds engagements for small to medium-sized organizations just like yours (typically 5 to 50 employees).
An Express Incentive Project includes:
• Strategy and structure assessment
• Compensation design for up to 5 roles
• Includes salary bands and incentives
• Market benchmarking of pay levels for those roles
• Plan documentation
• Pro-forma economic modeling (minimal historical testing)
• Roll-out guidance
• Development of an incentive calculator via Excel
• Additional automation possible
• 3 months of post-project support
• Project turnaround is approximately 4-6 weeks
1P1P PROJECT: ONE PERSON, ONE PLAN
A 1P1P Project is great for start-ups and small companies! It is our smallest project size, but this makes it ideal for those who need a single plan immediately.
The 1P1P Project includes:
• All plan design details
• Basic market pricing
• Economic testing
• Incentive plan documentation
• Outlining of goals and expectations
• Assessment of business goals and…
• Assessment of impact of this role on those goals
• Role clarification
• Development of an incentive calculator via Excel
• Additional automation possible
• 3 months of post-project support
• Project turnaround is approximately 2-3 weeks
FULL-SERVICE COMPENSATION PROJECT
When you need to clarify your business objectives, streamline your organization structure, improve employee accountabilities, AND want to develop plans for several interconnected roles, a Full-Service Compensation Project does it all! This project features multiple virtual meetings with our developers and your design team and is often selected by medium-sized to larger companies, as well as small companies undergoing major transformations.
A Full Service Compensation Project includes:
• Business goal clarification
• Incentive compensation plan design for all roles in scope
• Salary bands suitable for job postings
• Development of career levels for highly populated roles
• Employee change management
• Extensive pro-forma and historical economic modeling
• Goal-setting sharpening
• Market benchmarking of pay levels for all roles in scope
• Roll-out support and guidance
• Organization redesign and role change/definition
• 12 months post-project support
• Detailed and automated Excel calculator
• Additional automation possible
• Possible introduction to one of our EIM vendor partners
• With integration assistance into their platform
• Turnaround time is at least 90 days
• May vary depending on size and magnitude of change