(847) 236-1208

A Chicago-based packaging company with 5,000 employees worldwide

The Situation

The company inherited job titles, pay structure and performance management tools from former parent company. The former parent was unable to validate or explain the methodology for the current compensation scheme. There were no plan documents in place outlining terms and conditions for pay increases or incentive payouts. There had been no comprehensive compensation analysis done in over five (5) years. The company’s business strategy was to be more global in its focus. Its business strategy required a global rewards system.

The Deliverables

  • Understand the company’s current/future global compensation design/cost needs and requirements.
  • Conduct an inventory and assessment of the company’s current base pay and variable compensation plan designs, and determine what recommended changes, to both plan design and administrative requirements, would be appropriate.
  • Develop an approach to a global compensation structure.
  • Demonstrate the competitiveness of the current company’s pay practices (base pay and total cash) by business unit, function, and level.
  • Create operating guidelines for global versus any local administration and processes.

The Results Achieved

  • Global functional job family structure was developed to cover U.S. and European countries in which company operated.
  • Salary administration guidelines were developed to outline the company’s pay policy and administrative requirements.
  • Total number of incentive participants in annual incentive program was increased. Bonus targets were adjusted to appropriate levels based on competitive review.
  • Incentive plan document was developed to detail provisions governing the operation of the plan and plan participants will receive a mid-year progress statement.
  • Total project was accomplished in six (6) months.