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

The experiential New Employee Orientation was an incredible success for 2,500+ new hires over 4 years spread across the globe. They partnered with us to create an innovative solution on very short notice and added a huge amount of value. We could never have done it without their unmatched combination of expertise, professionalism, and creativity that aligned everything with our unique culture. Even our experienced hires were blown away!

Brenda Wagner
Founder and President

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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 key strategic projects forward. The experience was better than anticipated.  I could not be more pleased.

Heather Feltman
President & CEO

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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

The quality of LSA’s Leadership Training Programs and facilitators is always top notch. We recognize and appreciate the hard work LSA always goes through to align to our unique culture and meet our specific requirements. Thank you for regularly going above and beyond. Your support and dedication, both on the strategic and tactical side, have been outstanding!

Anna Meyer
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We partnered with LSA years ago.  Since then, our organization’s learning needs have increased, decreased, and increased again. The beauty of LSA’s business model is its flexibility and depth of their expertise.  When we need strategic or tactical outside help, we use LSA knowing that we can depend on outstanding quality advice and targeted solutions every time.

Margie Bunting
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Having a training outsourcing partner like LSA to support our talent management needs has been a real blessing. In an emerging company where typically you can’t afford the infrastructure necessary to provide a full range of offerings to meet the changing 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.

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Vice President, HR and IT

We turned to LSA Global to help take our behavioral interviewing process to the next level in terms of both efficiency and effectiveness. LSA quickly understood our unique culture and challenging requirements.  They immediately helped us to improve our ability to continue to hire top talent that fits our culture and talent management strategy as we rapidly scale.

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We have worked with LSA Global for our learning and development needs and have always had great success. They helped us recently with customized Management Training Workshops and they were fantastic.  I highly recommend LSA to anyone that is attempting to help take their talent to the next level.

Mary Johnston
HR Manager, BU Radiology Informatics

We partnered with LSA Global to help us invest in our people. LSA custom designed an impactful management curriculum to help upskill our key managers and leaders. We consider LSA to be our trusted learning and development partner and a valued extension of our team.

Lisa Bruun
SVP Human Resources

Ellie Mae

LSA Global has been a great partner in helping us move toward being “the leading developer of talent in the service performance management industry.” I have engaged LSA 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.

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Senior Director, Training & Development

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Tim Bonnet
Director of Training and Organizational Development

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LSA has a very unique and powerful methodology regarding learning. Their ability to overcome skepticism, obtain executive support, and create an aligned learning strategy that provides measurable business impact is second to none. They understand your goals, flex to your needs, and solve problems. 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.

Noelle Van Vlierbergen
Human Resources Director

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LSA asks the hard questions, listens, and understands our business needs. We receive the benefit of their expertise ranging from assistance with personal development plans to enhancing team performance, to looking at enterprise-wide challenges. LSA provides great ideas, a fresh approach, and valuable guidance on how to get the most from your talent.

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Director, Team Development

LSA Global brought a fresh perspective to our behavioral based interviewing strategy for key executive positions that we needed to fill.  They helped us to develop questions that produced a much deeper understanding of candidates’ capabilities. Throughout the process LSA was also very responsive in dealing with short lead time requests.  Thank you!

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Kim Silva, CFO

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