Driving Business Growth Through The Right Compensation Structure
Knowing where you stand versus competition in terms of remuneration is important, but using that information to design and structure an effective total compensation proposition is where you derive the competitive edge. Communicating the plan internally and “selling” it is critical.
Our Client was specifically interested in improving the performance of a few of their business divisions that were lagging competition. The belief was that new leadership at the head of the divisions would be able to energise the teams in becoming competitive in the market. In order to motivate the new leadership and the teams, the management was interested in designing a compensation strategy in line with industry norms. As their preferred HR Consultant, we were tasked with completing a comprehensive compensation benchmarking exercise to determine market rates for employees across levels.
Working closely with the Human Resources team, we identified the key roles to be included within the organization to cover the various divisions, i.e. Pharma Distribution, IT Distribution, FMCG Distribution, and Property. We collected data from relevant competitors, thus ensuring that a truly representative sample of roles from the industry was included as a prelude to undertaking the Role Benchmarking activity to establish the basis for comparing all aspects of compensation, i.e. guaranteed salary, variable pay, and benefits.
Basis the study, we recommended specific actions to align salary levels, variable pay components, and benefits in line with the market to design an effective talent strategy, and support all recruitment and executive search activity within the Group going forward.
The Compensation Benchmarking helped the business divisions bring in fresh leadership and motivate the teams in exceeding business targets. This helped them gain momentum over competition and re-establish a strong position in the market. The restructured compensation and benefits strategy and structure allowed the divisions to attract and retain the talent required to deliver business results, further cementing our place as their Human Resources Consultant of choice.
- Family Owned Group; Regional Businesses; Emerging Corporates
- Talent Management; Human Capital Solutions
- Minakshi Hajela, Ruth Fernandes