See how Executive Pay Systems has helped some of Australia's leading companies Improve Performance.
The company was losing some of its best performers to competitors by applying a company wide and rigid approach to remuneration management. Market forces had caused a dramatic shift in the level and type of rewards being offered to these employees. Read more...
The company had an issue with attracting and retaining suitably skilled and motivated employees. A substantive link between performance and reward did not exist. Although there had been bonus payments in the past it was on an ad-hoc and discretionary basis. The lack of a clearly defined policy caused inconsistencies in the remuneration practices. Read more...
The company was hamstrung by an ancient grading structure consisting of more than 36 grades. Salaries were determined using an elaborate job-sizing method which had the effect of firstly ratcheting up individuals within grades irrespective of the business strategy or performance and secondly encouraging promotion to higher grades in order to increase the salary budget of managers and to maintain compa-ratios at acceptable levels. The total fixed pay costs were escalating out of control. Read more...
The company had recently implemented a huge re-structure roughly based around the studies and findings of Elliott Jaques. Other HR systems, including remuneration, were catching up, some slower than others. The disconnect between the pre-existing traditional pay methodologies (data based salary determination, points-based job evaluation, etc) and the new work level based simplified structure was having a number of deleterious effects. Fixed costs were blowing out, performance was being relegated behind work value assessments and annual bonuses were unfunded and standardized by work value. That is, bonuses were becoming an entitlement. In addition, as a result of these and other factors, the annual review process was increasingly inefficient every year and had progressively eroded the reputation of the HR team. Read more...
The company had an issue with attracting and retaining Management and Executive talent. The diagnostic showed that this was principally because the remuneration arrangements were based on a traditional approach which had remained unchanged for many years. This exposed the company to interstate competitors who were able to poach otherwise very expensive skills at relatively low cost. Read more...
