BANKING SECTOR – COMPENSATION RESTRUCTURING
A main player in the banking sector in Ireland supplying services throughout the four provinces through a branch network supported by centralised HQ and Call Centre support.
The compensation system was based on determining the salary range for salaries using benchmark data. The approval of final salary offers was complex. There was a risk of unnecessary ‘sign off’ and other non-value-add activity. Some inconsistencies in applying salary range placement criteria to recruited candidates existed.
The challenge was to devise and implement a salary determination method that would be clearly understood, based on a full understanding of compensation philosophy and policy.
After considering the primary challenges and the desire streamline the salary approval process, we devised a plan to deliver immediate and long-term benefits. The project focused on the following:
- A clear process based on the organisations compensation philosophy
- Salary ranges for each of the 307 jobs across the whole organisation
- Defined ‘hiring zones’ within each range
- Pilot and review of the application of the methodology
- Development and delivery of education sessions and tools for all involved in sign off
- Full roll out to the executive team, HR Business Partners and Recruitment
- Implementation of monitoring and exception approval process
We were engaged to provide the solution, based on our previous experience of implementing process improvement, strategy development and delivering clear project plans.
Our solution involved combining already existing and successful activities with best practice, to deliver more value-added activities, removing waste (delays, rework, duplication), focusing on immediate and long-term benefits.
In 3 weeks, immediate changes were implemented that reduced administration and improved recruiter effectiveness. Clear guidance to place salary offers at the appropriate level reduced time to job offer provided improved budget compliance and removed ownership ambiguity.
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