Remuneration
| EMD Workforce Development specialises in
Performance Based Remuneration and Benchmarking of Senior Executive salary packages. Our
primary focus is to link organisational strategy with remuneration to provide alignment
between direction and reward. This alignment process
incorporates the linking of organisational scorecards, KPIs and other forms of performance
measures with variable pay for senior as well as front line staff. Our consulting process
ensures that the outcomes for which the senior executive and staff are rewarded aligns
with the objectives and performance measures of front line staff thereby creating
organisational alignment.
Remuneration is a way of translating organisational
strategy in to direct outcomes for staff.
Remuneration needs to focus on the commercial/business
outcomes for an organisation. When the outcomes for individuals/teams/departments are
linked to the organisational outcomes we achieve clear line of sight between what an
individual or a team does on a day to day basis and the returns to the business. |
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The other cornerstone of EMD's strategy is extensive
consultation to ascertain what would motivate various sub sections of staff. An option
which we strongly suggest is a survey of all staff to ascertain their feedback on existing
remuneration strategy as well as to seek views on remuneration options. Our research and
experience suggests that a one size fits all strategy is rarely appropriate. Strategies
should be tailored to the needs of employees and must match the market place, the life
cycle needs of staff and the needs of the business.
The strategy needs to provide a market advantage, differentiate our client from
competitors, and it must benefit employees at the same time.
Framework – A systems approach to remuneration and rewards.
The Process
Phase One - Development of staff's remuneration philosophy and principals.
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Assessment of the value of the total package
and in particular the performance pay components (if any). |
The outcomes of this phase will be used to
judge the effectiveness of the proposed variable pay strategy.
Phase Two - Data analysis - Benchmarking with relevant organisations.
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Identification of appropriate industry
performance pay comparisons: |
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Industry |
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Turnover |
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Number of employees |
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EBIT |
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Government -v- private ownership etc. |
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Without extensive consultation it is not
likely that staff will embrace options which are likely to be outside their sphere of
comfort. |
Phase Three - Draft report with options for
operation of performance pay;
Options Scorecard assessment including methodology and working papers; and The Executive
will work through all the strategies and all the options, in a structured, workshop to
decide the precise strategy.
Phase Four - Final refinement. Presentation of report to client.
At the end of the process final endorsement will be sought from The Executive and an
implementation plan will be prepared.
What next?
If you are interested in more information please give us a
call on +61 2 8399 0011 and ask to speak to one of our consultants.
Alternatively e-mail us at info@emdgroup.com.au or use the form on
our Contact Us page. |
