How Strategic Compensation Drives Performance and Retention

How can firms treat compensation as an investment in talent, performance and retention rather than a cost?

In this episode of "Built In," FMI Consulting President Scott Winstead speaks with Priya Kapila, partner and head of FMI's Compensation and Rewards team, and Kenia Washington, principal in FMI's compensation practice, about how firms can use compensation to improve performance, keep key employees and grow the business.

Drawing on FMI's 2026 Compensation Trends Study, they examine the growing use of long-term incentives, how clear pay ranges and career paths can reduce turnover, and how to reward performance while staying flexible. The study found that 54% of surveyed companies now offer long-term incentives, up from a historical 30% to 40%.

They also discuss pay for employees on remote projects and three questions leaders should ask about their compensation plans: Do the plans meet company goals? Are they competitive with the market? Do employees understand them?

Download the 2026 Compensation Trends Study here :https://tinyurl.com/bdhyb886