Lower Employee Performance due to Lower Compensation Addressed through a Structured Compensation Benchmarking Survey
Ma Foi’s structured intervention helped a leading Capital Equipment organization streamline its Compensation Levels according to Market Compensation Levels
Situation
A leading capital equipment organization with multiple revenue streams was facing a drop in performance levels due to disengaged employees and a spike in attrition. A diagnostic study informed the management about its compensation levels being lower than market standards. However, an across-the-board increase would not have addressed the problem as there were a number of roles where a correction was needed. Also, credible acceptance of the solution by employees was imperative to enhance their engagement levels which would in turn enhance their performance levels.
Solution
The client engaged Ma Foi to understand their current organization structure & roles and map them against relevant organizations in the market and accordingly map their compensation levels. Along with role mapping based on job descriptions, education, experience and a few other relevant role parameters, a list of comparator organizations were finalized. The comparator organization were drawn based on talent mobility in terms of organizations from where employees joined the client organization and organizations where ex-employees had joined. This information was gathered through a study of the talent acquisition & exit management processes.
In order to ensure an apples-to-apples comparison, Ma Foi mapped the client organizations roles with those in the comparator organizations based on roles specification & job description and not on designation. This ensured that the market compensation was closely linked with the role requirements.
Result
Ma Foi identified six developmental themes namely, career & succession planning, training & development, manpower planning, employee engagement, performance management, and effective communication as key drivers for retention. Ma Foi formulated action points to address attrition through institutionalisation of these developmental themes at dealership. A well-defined, implementation road map was developed to enable HR team at dealership location to build an engaged workforce. Ma Foi anchored the implementation through a clustered training delivery model covering all dealership and Territory Managers.
