Human Capital Development Case Study

Context

A large financial organization that has undergone an internal transformation and rapid changes, in particular in the people management direction. The remuneration system was connected to the performance system; a comparison was made with the market. For new employees, the salary was determined based on the results of the interview, for working staff – situationally and/or based on the results of performance evaluation

Problem

The difference between the levels of payment of new and working staff for the same work “Manual” management and manipulation by managers regarding salary revision Internal salary inconsistency between functions (key functions received average salary on par with support functions) Inconsistency of remuneration policy with the market Unpredictability and uncontrollability

What we did

01
Functional analysis and evaluation of the value of positions (roles) within the framework of job grading
02
Implementation of the internal and external justice logic to remuneration
03
Automation of the job evaluation process and grade determination 
04
Transferring the right to manage the salary fund to managers with additional rules and standards  

Results achieved

01
New reward policy based on grading
02
The system of automatic calculation of the value of the position and grade
03
Reviewing salaries for employees and smoothing out internal discrepancies
04
Minimization of “manual” management and cases of manipulation of employees’ salary