A simpler way to pay.

Area of Science:

• Business Management
• Organizational Psychology

Background:

• Professional services compensation has shifted from seniority-based to performance-based models.
• Egon Zehnder International maintains a unique, seniority-based compensation system.
• This approach contrasts with the prevailing industry trend towards client billings and new client acquisition.

Purpose of the Study:

• To examine the effectiveness of Egon Zehnder International's seniority-based compensation model.
• To understand how this compensation strategy influences hiring and employee retention.
• To explore the firm's intensive interview process designed to select suitable candidates.

Main Methods:

• Analysis of Egon Zehnder International's compensation structure.
• Description of the firm's recruitment and interview process.
• Case study of a professional services firm's unique HR practices.

Main Results:

• The seniority-based compensation attracts and retains team-oriented consultants.
• The system fosters a culture of group success over individual advancement.
• The intensive interview process ensures cultural alignment across global offices.

Conclusions:

• Egon Zehnder International's traditional compensation model successfully cultivates a dedicated, team-focused workforce.
• The firm's hiring practices ensure cultural cohesion and long-term commitment.
• This approach, while unconventional, proves effective for talent management in executive search.