Our customer, an international telecommunications operator, wanted to assess the variable remuneration schemes (excluding those applicable to sales people) in place within its company. It wished to evaluate how the schemes should evolve in light of the company’s strategic directions, and considering its financial, social and customer experience objectives.
The mission objectives are:
• Identify the structure and governance of the variable remuneration in place for each of the group’s entities
• Assess how the variable remuneration serves the company’s overall goals
• Propose evolutions scenarios for the variable remuneration
• Share a feedback with the HR representatives in order to feed their own thinking
Our experts performed this assessment over 38 entities spread over 8 European and 11 African countries. Thanks to individual interviews with the person in charge of remuneration in each entity, their assessment covered 90% of the employees i.e. 130 000 people.
Prior to conducting these interviews, our consultants created a very comprehensive yet open interview guide. This guide included several aspects of the variable remuneration: its objectives, its structure, its governance and its evolution.
Then our consultants compiled the data collected and their analysis into several factsheets per country and per entity: percentage of the entity’s workforce benefiting from variable remuneration, share of the variable remuneration within the total salary, share of the collective component within the individual variable remuneration, balance between individual and collective components, clarity of the variable remuneration criteria and calculation, etc.
This assessment conducted our client to raise several more questions. Our consultants thus proposed a methodology in order to answer these questions in a second phase.
Thanks to this project, our customer now benefits from a global view over the variable remuneration proposed across its company. Although this initial assessment has uncovered further questions, our client has at its disposal a very clear definition of the steps required to pursue this analysis further.