Policy And Processes
The success of an organization, company or business is based, in no small measure, on correct management of the salary and remuneration components. In order to create a well-structured set of remuneration, labor agreements and incentives, a set of fundamental principles must be laid down. Procedures must be created and a structure policy must be formed, which will be suited to the organization’s character and to the way the burden is distributed among the employees.
Compvision’s consultants and experts are there for you to support company managers, HR managers and payroll managers in carrying out a thorough examination, in evaluating the current status and in setting methodical policies and processes for creating a salary structure within the organization. This way we assist the organization’s personnel in achieving the goals and targets defined at the outset.
How is the policy determined? how can we form orderly processes?
The process we offer rolls out in three main stages.
laying down the principles
In the first stage we are there to map the current state and to create fundamental principles for remunerating employees and managers. The principles are set in cooperation with the company personnel, following a thorough review of many substantial questions. During this process we review the company’s values, its vision and goals, we examine what the strategy of the company personnel is and what corporate culture currently prevails there.
We ask many questions and through them we evaluate the important principles which emerge from the research.
Our checks include a review of questions such as what are the company’s main challenges in terms of remuneration, what is the company willing to pay for (performance, teamwork, dedication, effort and investment), what does the company want to encourage and what not? (Behaviors, courses of action), are they prepared to allow large gaps in the remuneration? And if so, on which components?
We also check how the company wants to position its remuneration: whether through the base salary, through benefits, performance-dependent remuneration, equity-based remuneration etc.
defining the policy
Following the analysis of the actual salary status and formation of the company’s concept of remuneration, our experts assist the company in writing policy on the entire range of salary and remuneration issues.
Within this process we take into consideration many numerical data items and qualitative variables including the law, personal / collective agreements, the ownership, the industry sector, the commonly paid salarys in the sector and so on.
BUILDING A STRUCTURED PROGRAM AFTER DEFINING THE POLICY
The program consists of several different processes:
- Defining salary ranges per population based on what is commonly accepted in the market (based on salary surveys).
- Creation of an internal fairness mechanism (which addresses aspects such as seniority and various stages of development).
- Simulation and financial analysis of the changes in the current policy and implementation of the new policy.
- Evaluation of the legal aspects of the changes in the current policy.
- Supporting the company through the transition and implementation process with special emphasis on intra- and extra-organizational communication and dissemination.
EVALUATION OF THE RANGE OF FRINGE BENEFITS
Analysis of the financial impact of changing the policy concerning each one of these components and formation of a fringe benefits policy better suited to the organization’s needs and character.
The data reviewed as part of the examination of the range of fringe benefits refers to issues such as social benefits, vacation days, sick-leave days, vehicles, mobile phones, meals, travel, terms of terminating employer-employee relations. Additionally, the less conventional benefits are examined, including courses, loans, psychological consultations etc.
PAYROLL STRUCTURE CONVERSION (CONVERSION MODEL) DURING MERGERS AND AcQUISITIONS
In cases where the company undergoes a merger or acquisition process, a model for converting the payroll structure from one company to the other is needed.
The model must include alternatives which retain the budgetary framework, thereby ensuring a correct balance between the components of the remuneration package.
Long-term effects are taken into consideration within the process, including the positioning of the base salary relative to the market, size of the incentives and bonuses etc.
In addition, we examine the perceived value in the eyes of the employees, we deal with legal exposures and we also survey and assist in presenting the new model to the employees and retaining their satisfaction and loyalty toward the company.
THE PROCESS OF BUILDING A CONVERSION MODEL INCLUDES:
- Formation of the conversion principles for all the company’s agreement types.
- Running calculations and simulations which help evaluate the costs to the company related to each employee individually.
- Building a precise conversion sheet for each employee and verification of his details.
- Building a dissemination plan for managers and employees, consisting of a presentation and Q&A document.
- Explanatory meetings with the company executives and managers.
- Active participation in the dissemination talks with the employees (both in groups and in one-on-one meetings).
From our experience we have found that any change in the salary structure arouses anxiety and suspicion among the employees. This must therefore be handled professionally and sensitively.
We help HR managers, the company CEO or anyone else in charge of creating these changes, to understand and set the payroll structure within the organization so that it will serve the organization’s or company’s goals in the long term.