Innovative Compensation Model: Consumer Products

Using compensation to drive performance and career development at a consumer products company

Client Case Study

Situation

This major consumer product manufacturer was experiencing problems with a pay grade structure that over the years had become too inflexible to accommodate their multiple plant locations and evolving talent strategies.

Complications

The current pay structure produced several problems:

  • Frustrated employees perceived that only job promotions ensured salary growth.
  • The employer realized that not all individuals sought management roles, eliminating promotions as a viable incentive.
  • Those in professional and technical occupations, such as engineers, wanted upward mobility within their field without becoming managers.

Approach

  1. Analysis: Conducted an in-depth analysis of the growing needs of the manufacturer
  2. Design: Developed an innovative compensation model that collapsed the large number of pay grades into a few wide bands, each representing a different level in the company hierarchy.

Results

  • This solution provided an alternative to the up or out mentality that was formerly associated with their system.
  • The new compensation program encouraged cross-training by motivating employees to move laterally.
  • Employees gained new skills and increased their earning potential without being promoted in the traditional sense.
  • The increased flexibility and latitude within the salary bands empowered managers to reward and retain high performing individuals, and addressed geographic differentials without requiring customized pay decisions for each region of the country.
  • Managers soon gained more independence within the guidelines of the new system to reward key performers and critical skill sets. Employees gained the ability to learn new skills outside their traditional roles and were rewarded without the pressure to earn a grade level promotion.

Related Information

We recently hired LSA to help us take our client delivery methodology to the next level as we continue to grow and help our clients succeed. The custom strategy and design session exceeded my expectations. They really understood our business and turned around the project within a tight timeframe. LSA’s consultants were the best I have seen for this type of project. LSA’s ability to get a group of 20+ executives from around the globe on the same page, push their thinking to new heights, and ensure an executable plan was excellent. I would recommend LSA to anyone looking to take their plans and execution to the next level.

Rob Sturgeon
EVP Client Delivery

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Martyn Storey
Systems Engineer Manager

Having a training outsourcing partner like LSA to support our training and development needs has been a real benefit. In an emerging company where typically you can’t afford the infrastructure necessary to provide a full range of development venues to meet the broad needs of an organization, having an external partner who understands our business and our culture and offers everything from a wide range of open enrollment programs to customized organizational development consulting is almost as good (and in some cases better than) having your own internal Training and Organizational Development function.

Chris Wells
Vice President, HR and IT

Redwood Trust looked to LSA Global as a consulting partner to help us explore innovative and scholarly approaches to promote employee engagement and sustain the unique culture we’ve built over the last decade.

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We appreciate LSA’s commitment to cutting-edge practices and keeping us in step with the progressive front of our rapidly changing workplace environment.

Rosalyn Chan
Vice President, Human Resources

Redwood Trust

What a personal and professional pleasure it has been to Partner with LSA. They are truly a strategic partner with Wyse. For more than 5 years, LSA has been engaged in delivering various training and development solutions for Wyse, from custom on-site programs targeting specific core competencies, to working individually with clients to build job skills, and offering invaluable services to me and my team as we continue to build our learning programs. LSA’s representatives do more than sell a product, they offer a full service solution: they understand our business, our strategic initiatives, and the needs of our customers.

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Director of HR

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Fujitsu

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LSA has a very unique and powerful methodology regarding learning and learning strategy. LSA’s ability to overcome skepticism, obtain executive support, and create an aligned learning strategy that provides measurable business impact is second to none. They partner with you to understand your goals, flex to your needs, and solve your problems – all within your budget. They certainly help make my job easier and are a pleasure to work with. I highly recommend LSA to anyone trying to connect the dots between strategy, skills, knowledge, and results.

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AKQA

LSA Global has been a great partner in helping ServiceSource move toward its Vision of being “the leading developer of talent in the service performance management industry.” I have engaged LSA’s services to help develop best-in-class programs in the areas of: Executive On-boarding, Manager Training, Sales Training, Employee Engagement and Instructional Design. They have consistently met or exceeded my (very) high expectations and are always responsive to my needs.

Mike Normant
Senior Director, Training & Development

Service Source

I just wanted to let you know how pleased I am with how the new employee on-boarding project went. The end product is wonderful! LSA has been great to work with. I really appreciate all the flexibility and the high quality.

Laurie Torres
Vice President of Human Resources

PDL

The action-learning leadership project has been very beneficial to me, our leadership team, and the entire organization. The balance of development and results has been excellent. We have made huge progress, and I was also able to identify 2-3 high potentials while having the extra benefit of people stepping up to carry strategic projects forward. The Staff is very appreciative and has become very comfortable with both the program and the process. It is still going better than anticipated, and I have been very pleased.

Heather Feltman
President & CEO

LSS

I wanted to let you know how much I enjoyed working with LSA on the design and delivery of the experiential new employee on-boarding training. I’ve been getting tons of positive unsolicited feedback. You truly exceeded everyone’s expectations.

Steven Gray
US Enterprise Services

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

We partnered with LSA Global to help us invest in our people. LSA designed a modular and customized management curriculum that allows us to deliver top quality solutions to our managers and leaders. We consider LSA to be our learning and development partner and our LSA consultants to be an extension of our team.

Lisa Bruun
SVP Human Resources

Ellie Mae

As a Training Outsourcing Partner, LSA consistently saves me time and money by designing the right solutions and quickly bringing us the best experts to solve key business problems in a way that works for our unique culture. Their methodology and resources are fantastic and allow us to deploy better solutions faster. I highly recommend them to anyone looking to raise the talent bar with a true strategic partner.

Tim Bonnet
Director of Training and Organizational Development

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