Challenge: A client had no framework in place to determine if pay practices were competitive with the market, and managers were not savvy about administering and communicating compensation.
Solution Deployed: We researched available salary survey sources and recommended the best surveys for our client. We worked with managers to update job descriptions and benchmarked positions to the market data. By analyzing market data and internal equity, we were able to develop a salary structure quickly, just in time for the annual compensation cycle.
After developing a toolkit for managers, we trained managers on the basics of compensation administration and prepared talking points to help them communicate compensation decisions. Because many employees’ base pay fell significantly under market, we recommended that our client allocate part of their merit budget towards market adjustments and prioritize the market adjustments for top performers in key positions. Market pay adjustments were phased in over a multi-year period, and the remaining merit pool was heavily differentiated based on employee performance and base pay compa-ratio.
Business Value Delivered: By providing tools and training, managers became better stewards of company resources, and employees had a better understanding of the client’s pay philosophy and practices. The multi-year strategy for market adjustments was affordable and helped the company remain competitive. Differentiating pay for performance meant the highest performers were adequately rewarded, and employee retention in key positions increased, reducing business risk.
Client Industry: Technology
Project Type: Compensation Benchmarking, Training, Strategic Communication, Compensation Philosophy
Business Structure: For-Profit, Privately Held