Revamped compensation and benefits for employee retention

Organisation Tools

Attrition to Attraction

A leading manufacturer of medical equipment was struggling with almost 35% attrition within its sales staff. An analysis of their compensation model revealed that it was not well benchmarked to market standards, or linked with their individual or collective performance.

HR Anexi conducted an in-depth benchmarking study, mapping the current organisation’s compensation structure with existing industry trends. The strongest differentiator and ROI associated with this study was the fact that HR Anexi could actually compare the company’s compensation model with the exact standards of their competitors from where they recruited their talent, and to whom they lost their best performers.

The company remodelled its compensation system based on the Compensation & Benefits study and its recommendations. Top performers started being compensated against market standards and specific competitor salary trends, Additionally, compensations were now intricately linked with measurable performance, and individual rewards were tied to team or divisional bonus pools. Close on heels with transforming their compensation processes, the company also rationalized their sales team structure based on employee performance, tenure and salary.

The result? Attrition reduced by almost 13% within a year of change implementation, while most sales teams saw rapid boosts in productivity and inter-group collaboration. The organisation became better poised to attract and retain its top sales talent vis-a-vis the competition, while generating sustained impact on top-line profits across units.

NEXT CASE STUDY

Devil in Detail