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

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.

Jeff Rangel
Director of HR

We held our 1st Year Academy for our new associates last week, and the segment that LSA helped us redesign went exceptionally well. Their instructional design skills made it more relevant, more interactive, and more engaging. We greatly appreciate what LSA did to help us greatly improve a key component of our program!

Larry Brown
Senior Manager, Training & Professional Development

We hired LSA Global to design and deliver a customized outdoor experiential new employee orientation program for our recent group of MBA new hires. The program designed helped reinforce WIPRO core values. The program will help the new MBA hires to build relationships with fellow associates and enhance the group’s ability to operate successfully in the global world. I recommend LSA for effective on boarding/outward bound training of new MBA hires.

Vishu Venkat, PHR
Talent Acquisition

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

This was an extremely effective executive strategy session that helped our executive team efficiently navigate through our core strategic objectives. It was exactly what we needed.  The approach was practical and valuable for our specific business and market. I would recommend LSA to anyone looking to push their strategic planning and growth to the next level.

Blake Krikorian
CEO

I contacted LSA to help us with leadership development. LSA worked with me to identify a solution that would match our needs as well as our personality. The solution was such a huge success. It received rave reviews. I would highly recommend LSA to other companies.

Karen King, SPHR
Manager, Human Resources

Alliance Data

“We turned to LSA to help us custom design and deliver a leadership and management development curriculum to help drive performance. They have done an excellent job diagnosing the business situation, designing an approach that fits our culture, and delivering a first class solution.”

Sally Buchannan
VP Human Resources

LSA Global has provided our Employee Engagement Survey for the past 3 years. Their ability to administer the survey, help us sort through complex organizational changes that impact reporting, and provide flexible, customized report formats gives a high level of comfort and confidence in the work. The survey results have helped us identify and take actions to address the concerns of our Gen Y workforce. In all, LSA provides us with great value, and I would highly recommend them.

Mike Normant
Senior Director, Training & Development

Service Source

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

Dimension Data

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 our expectations. They really understood our business and delivered within tight time frames.  They were the best I have seen for this type of complex, visible and strategic work. 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 strategy and strategic execution to the next level.

Rob Sturgeon
EVP Client Delivery

Service Source

LSA Global’s consultant brought a fresh perspective to our behavioral based interviewing strategy for two key executive positions we needed to fill, and their consultant helped us develop questions that produced a much deeper understanding of candidates’ capabilities. I am confident that the two new executives joining our organization have the right skills to add significant value. Throughout the process LSA was also very responsive in dealing with short lead time requests.

Because of the unique nature of our business, Excel is a core application in our accounting organization. After three attempts to find an Excel consultant who is capable of helping our finance team integrate advanced applications into our work processes we found LSA and Alex. He was not only a “Real” Excel expert but was masterful in helping us identify where to use Excel applications in our processes to increase our group’s efficiency.

SPO Partners & Co
Kim Silva, CFO

Thank you to LSA Global for their partnership and support in helping us to design and roll-out our valuable management development training program. I personally have partnered with LSA Global at four of my previous companies. It continues to be a delight working with LSA. We look forward to partnering with them at Blackhawk Networks for future training and consulting needs.

Suzanne Kinner
VP Human Resources

Blackhawk Network

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

We have had a very beneficial partnership with LSA for over 2 years. The recent Leadership Development Program that they designed and customized with us to help us identify, develop, and retain top leaders in the organization was a huge success. It was instrumental in helping take our company and our key people to the next level. I would recommend their training and consulting services to anyone looking to develop and retain top talent.

Steve Janowsky
Vice President of Operations

Proxicom

A key to performance improvement is strongly linked to cultivating the proper type of motivation. Since the performance management training, I have been much more focused on identifying and discussing how our actions in Engineering create value to IGT’s success. So far, the feedback has been positive. The group appears to be more accountable for their actions, and victim loop reactions are less frequent. The value proposition for me and those groups we work with is better teamwork, higher spirits, and a better outlook for things to come in the future (renewed enthusiasm).

Stewart Thoeni
Mechanical, HW Engineering Director

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