Compensation Structure Redux
Challenge: A biotech organization requested our assistance to achieve the following goals:
- Review existing strategies, practices and policies related to compensation across the organization
- Develop a robust compensation structure that could be implemented and executed consistently for the next several years
- Provide guidance and recommendations for implementing recommended changes
- Assist in the development of a strategic communications plan for each stage of the project
Solution Deployed: To achieve these goals, we reviewed the existing compensation structure and practices to identify critical needs and worked with the executive team to determine a compensation philosophy. With a written philosophy in place, market benchmarks were established for approximately 60 positions within the organization including 20 science/research positions and 40 administrative and management positions.
Local, national, cross-industry and industry-specific salary survey data were utilized to conduct the market assessment for each job. The market assessment included an analysis of salary survey data for similar-type positions and contained 80% or greater job similarity in function and requirements was required for each match. Two formal salary structures were created using this data: one for scientific positions and another for administrative and management positions.
We developed guidelines for managing the new system and conducted a full evaluation of individual employee pay levels establishing a projected budget.
Business Value Delivered: The three-month project resulted in a clearly defined compensation philosophy and strategy. Employees were informed via company-wide email and face-to-face communication during open discussions in all staff meetings. Managers partnered with our team and the clients Human Resources team to understand the impact of the new system during the annual performance evaluation and pay increase period.
Due to the clear communication and implementation process, the organization was successful in establishing and implementing their new pay system. It has now been in place for over five years and is continuing to bring value to the employees, HR team, management and shareholders.
Client Industry: Biotech
Project Type: Pay Practices, Compensation Structure, Strategic Communication, Training, Compensation Philosophy
Business Structure: For-Profit, Publicly Traded