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

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Anna Meyer
Leadership Development

Intuit

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Director, Team Development

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CEO

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Steven Gray
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Laurie Torres
Vice President of Human Resources

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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

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We partnered with LSA to help custom design, deliver, and measure an advanced new employee on-boarding and measurement process. The process was well thought out and bought into by sales leadership. The combination of targeted sales tools, technology, coaching, performance plans, training and reinforcement made all the difference.  The pilot program in EMEA was a big success and the solution quantifiably improved new employee and hiring manager satisfaction and increased the speed to sales quota for new hires. We are continuing to work with LSA Global to scale the program in other GEOs and expand to cover more roles at VMware.  I would recommend LSA Global for any sales enablement team looking to increase the engagement and speed to productivity of their sales force. We are excited to implement the program globally across VMware as we continue to scale.

Rochana Golani
Director, Global Field Readiness

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.

Chris Wells
Vice President, HR and IT

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

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

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Suzanne Kinner
VP Human Resources

Blackhawk Network

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Heather Feltman
President & CEO

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Karen King, SPHR
Manager, Human Resources

Alliance Data

LSA’s approach and ability to bring the best resources to eBay has been a great asset. They really focus on helping us succeed in any way they can and are very flexible in meeting our management and talent needs.

Mike Normant
Learning & Development

ebay

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