Innovecs. Natalia Zub Compensation review procedure

Compensation review procedure

Developed by Natalia Zub for The54

This is a story…

about 70 people 5 managers and one HR

All of them wanted to benefit from the process of compensation review But everyone has a different goals

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STEP 1. When?

When it’s time to increase compensation?

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When?

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When?

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• Every year?

• Every calendar year?

• Every 6 months?

• Every 3 months?

• Case by case?

Company statistics:

• Attrition cases (reason: compensation issue)

• Ad hoc reviews (year to date) with budget

Industry standards

Growth and Age

Psy factor and expectations

Company policies

How often?

I’ve got a compensation increase. When will be the next round?

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How often?

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+9%

+42%

*dou.ua

How often?

Market dynamics

Company statistics:

• promotions frequency

• average age

Forecasted budget (for a year)

Ad hoc cases

Company policies (performance reviews)

Workload

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STEP 2. Who?

… deserves?

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Who?

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promotion

exceptional performance

more than one year from the last salary review

salary level is much below the market

red flag

Why?

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Why?

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The latest performance review results:

• Performance

• Potential

• MBO goals completion

• Promotion

Key indicators:

STEP 3. Where is a money?

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Where is the money?

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Take a look at the year not one month

Take a look on a team not a person

(business generator)

Customer raise (due to promotion)

Variable part, MBO

Operational costs decrease

Project rotation

Overtimes

…

Some ideas:

How the procedure works

Finally, we’ve got the transparent process that suits our needs and goes in line with other company processes. It works successfully for almost 2 years.

Full transparency for people and managers, simple process, no more financial gaps, zero bureaucracy

The results

How it works

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HR Department

List of peopleAge in companyAge from last reviewReason for last reviewCompensationMarket Project FinancesPerformance review results

List of peopleNew salaryRaise deltaReason for reviewProject FinancesOverall budget

Project managers

List of peopleNew salaryRaise deltaReason for reviewNew FinancialOverall budget

Approvals Overall budget

Board

List of people

Retention

1 2

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5

Thank You!

INNOVECS HEADQUARTERS

6-z, Ivan Lepse AvenueKiev, Ukraine 03680

Office: +38-044-593-7794

Fax: +38 044-593-7795

www.innovecs.com