innovecs. natalia zub compensation review procedure
TRANSCRIPT
This is a story…
about 70 people 5 managers and one HR
All of them wanted to benefit from the process of compensation review But everyone has a different goals
When?
6
• Every year?
• Every calendar year?
• Every 6 months?
• Every 3 months?
• Case by case?
Company statistics:
• Attrition cases (reason: compensation issue)
• Ad hoc reviews (year to date) with budget
Industry standards
Growth and Age
Psy factor and expectations
Company policies
How often?
Market dynamics
Company statistics:
• promotions frequency
• average age
Forecasted budget (for a year)
Ad hoc cases
Company policies (performance reviews)
Workload
9
Who?
11
promotion
exceptional performance
more than one year from the last salary review
salary level is much below the market
red flag
Why?
14
The latest performance review results:
• Performance
• Potential
• MBO goals completion
• Promotion
Key indicators:
Where is the money?
17
Take a look at the year not one month
Take a look on a team not a person
(business generator)
Customer raise (due to promotion)
Variable part, MBO
Operational costs decrease
Project rotation
Overtimes
…
Some ideas:
How the procedure works
Finally, we’ve got the transparent process that suits our needs and goes in line with other company processes. It works successfully for almost 2 years.
Full transparency for people and managers, simple process, no more financial gaps, zero bureaucracy
The results
How it works
19
HR Department
List of peopleAge in companyAge from last reviewReason for last reviewCompensationMarket Project FinancesPerformance review results
List of peopleNew salaryRaise deltaReason for reviewProject FinancesOverall budget
Project managers
List of peopleNew salaryRaise deltaReason for reviewNew FinancialOverall budget
Approvals Overall budget
Board
List of people
Retention
1 2
3
4
5