Executives are imperative to value creation for all stakeholders in any organisation. How much should you pay the top management of your firm? And, how should you structure the package from fixed to variable pay, short- and long-term incentives, benefits & perquisites? HRBS frequently advises MNCs and local companies of all sizes on the review of the pay packages of their C-Suites and Managers, providing independent recommendations. These Executives include Global, Regional, Country Roles filled by Local, Local Foreigners, Local-Plus and Expatriate incumbents.
To achieve a fair benchmarking, HRBS performs rigorous evaluation of the role and responsibilities of each position, using our proprietary HRBS Position Evaluation System (PES), to obtain the job value (job size denoted by HRBS Rank). Comparable peer companies can then be selected from our executive pay database to support our objective reviews and recommendations.
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One of the most well-known and flourishing global fashion brands never used to benchmark their senior executives’ pay against the market. The Company received frequent feedback from the employees about their uncompetitive pay; nonetheless, the Company had absolutely no idea about its current market positioning.
HRBS conducted a thorough study on the pay competitiveness of the executive team that comprises of 12 expatriates located in the Asia headquarters. This involved a series of steps including job evaluation, job matching and benchmark peer company selection.
This was a challenging exercise due to the complexity of the organisation with matrix reporting lines and the uniqueness of work allocation across functions. As a result, it was especially important to get the accurate job sizes and identify the right benchmark in the marketplace for fair comparison. Without solid fundamentals, the benchmarking would not be inaccurate.