Sofrecom’s experts have redesigned the compensation scheme of an incumbent African telecommunications operator. Our client wanted to optimize the fixed and variable remuneration of its employees, as well as the specific variable scheme applied to the sales force. These changes had several objectives: to support the increase in turnover, to increase the customer base, and to drive up customer satisfaction.
Our consultants started by analyzing the schemes in place in terms of costs, impact on the strategic directions, and possible evolutions due to demographic changes.
In parallel, they conducted a benchmark of the compensation schemes used in the customer’s country and in the telecommunications market in general.
Following these two analyses, our experts expressed several recommendations for each of our client’s divisions. These included:
- performance criteria
- an analysis of the impacts Vs. objectives
- financial simulations
On the basis of the impacts analysis of these changes on the information system and all other HR processes, our consultants also recommended a phased implementation.
Our client now benefits from a simple and easy to implement scheme. The financial and HR impacts of each of the options is identified. The performance levels and the associated variable remuneration are precisely defined and are aligned with the real activity of each division. The redesign of the fixed salary scheme is spread over 5 years and the evolutions of salaries are detailed per year for each HR category.