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.
Freight Brokerage Compensation
Proud Members of
Freight Brokerage Expertise
Prosperio Group is the only compensation development firm that has worked with over 300 freight brokers to develop or revise their compensation plans. We started in 2007 and have written THE book (it’s the only one!) on Freight Broker compensation. Our work has been with small brokers (teams of 3), all the way up to some of the leading players with over $1 billion in revenue. Many of our clients have brought us back year after year to help them further refine their plans and ensure they are continuing to get maximum ROI from their compensation dollars. Beth, the owner of Prosperio Group, is a regular speaker at the TIA Conference and a leading contributor to 3PL Perspectives magazine. Simply put, there is no one else on the planet who knows as much about Freight Broker compensation as Beth does.
Our work focuses on ensuring the organization structure is solid, before even considering compensation plans. Freight brokerage is still a relatively new industry, and it is going through growing pains as companies discover they need to evolve. This evolution takes them beyond the straight commission model commonly found among start-ups. There are only a few brokerages of any size left that still use a “cradle to grave” model. Most have adapted to either a pod structure or a functional split model with one side of the house focusing on shipper sales and another on carrier sales. These models require vastly different approaches to pay. Also, you must consider what type of freight you are dealing with and if your desired mix of spot vs. contract freight is shifting. If it is, and you don’t change your compensation plan accordingly, you could vastly over or underpay the market rate for your workers. We ensure that your compensation plan aligns with and supports your desired structure and business strategy. If you are finding that you want to change your structure but can’t “because of the comp plan” – CONTACT US RIGHT NOW! The tail is wagging the dog and you need to STOP IT. Your comp plan MUST NOT be running the business!
DON’T KNOW IF YOU HAVE A PROBLEM? CONSIDER THESE QUESTIONS
Are you getting the quantity and quality of new customers you desire?
Is your mix of freight type the way you want it (dry van vs. temp controlled, etc.)?
Is your contract mix the way you want it (spot vs. dedicated vs. managed trans vs. contracted lanes)?
Is your employee turnover less than 15%?
Are you able to attract and retain the talent you need to grow the business?
Do you feel everyone in your sales and operations group is paid appropriately for the business they are managing or developing?
Do your employees understand their compensation plans?
Have you given salary increases in the last three years?
Do you know what the new proposed FLSA levels are (we are at it again!) and have you done an audit to understand which roles are at risk of being reclassified?
Is your cost of compensation as a percentage of GM$ less than 40%?
Do your employees work together, in alignment with company objectives, or are they being rewarded for working against each other and the company interests?
Are managers rewarded for being managers or does your compensation plan create an inherent conflict of interest for them?
Compensation is CENTRAL to a brokerage’s health – it’s the heart of the organization, truly, and if the heart isn’t pumping properly the company will suffer. Don’t hesitate to reach out if you think your organization could benefit by improving your compensation practices. The first consultation is always free, but the return on your time could be exponential.
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