Client Situation
Our client is a leading Real Estate firm in the Middle East, involved in large-scale integrated building products manufacturing. The client was facing high attrition & loss of talent. Thus, it became imperative for the client to realign compensation with industry benchmarks & to attract & retain talent for their business units & head office.
Cedar’s Approach
Cedar was mandated for re-alignment of compensation architecture to offer competitive salaries and execute key job fitments for the clients. This was implemented through the following process:
- External Assessment: Cedar performed an external assessment to understand the client’s needs & background. A profile relevant market peer group was analyzed for benchmarking purposes
- Internal Assessment: Cedar analyzed the current compensation strategy of the company, including grading, fixed pay, benefits and variable payouts & one-on-one meetings were conducted
- Data Analysis: Various resources were accumulated to calculate and interpret the compensation split analysis & intra range ratio
- Benchmarking Report: A benchmarking report was formulated in order to develop market aligned fixed compensation & to make sure that the job fitment was aligned to the recommended compensation architecture
Outcome
The impact on the client’s organization by the program conducted by Cedar was:
- Increased payroll contribution to 12.8% from 11.2% of annual revenue previously
- A mixed payment plan was recommended to the client as a part of their variable pay plan
- Cedar recommended a standardized short term & long-term incentive plan to the client consisting of diversified incentives
- Five key aspects as per market best practices for compensation benchmarking & architecture re-alignment were prescribed as considerations for Way-forward to the client
- The recommended market positioning of the client led to a >2% additional impact on annual revenue