S12 Final Report - Sample

41
FastCat Corporation FastCat Corporation FastCat Corporation Final Group Project Report Name of Group: Name of Group Member A Name of Group Member B Name of Group Member C Name of Group Member D Name of Group Member E Name of Group Member F

Transcript of S12 Final Report - Sample

Page 1: S12 Final Report - Sample

FastCat CorporationGroup Project Report

FastCat CorporationGroup Project Report

FastCat CorporationFinal Group Project Report

Name of Group Name of Group Member AName of Group Member BName of Group Member CName of Group Member DName of Group Member EName of Group Member F

TABLE OF CONTENTS

EXECUTIVE SUMMARY

I Background ndash Business Reality amp Business Strategy

II Total Reward Systemsa Reward Objectives amp Strategiesb Linkage with FastCat Business Objectives

III Internal Alignmenta Organization Structure and Job Familiesb Job Evaluation Methodology selection and rationalec Recommended Internal Job Structured Process amp Administration

IV External Competitivenessa Total Reward Survey b Recommended Competitive Policy Line (s)c Integration of Internal Job Structure with competitive pay policy

V Pay For Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policyb Merit Pay Design ndash Merit Matrixc Organizational Performance Bonus ndash Balanced Scorecardd Final Integration of Individual with Pay Policy

VI Execution amp Implementationa Training Programb Communication Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

VII Appendices

1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable

SAMPLE ndash FOR ILLUSTRATION ONLY

MemoTo FastCat CEO and Executive Committee

From Name of Team

(Names of Members)

Date January 12 2009

Re Total Reward System for FastCat

Executive Summary

[Approach to this Report ndash Assume that you and your Group are Management Consultants

proposing a comprehensive Reward Solution to the Senior Management of FastCat]

[The length of the Executive Summary should be around one to two pages and include

information on

Background ndash FastCatrsquos business situation and your Grouprsquos role in this study

Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp

Business Strategies

Main Objective(s) of the study

What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp

Implementation In each Phase

Why such actions were taken

Expected benefits of such actions

What were considered but rejected

The reason why there were rejected

Key Recommendations ndash Total Reward System

Connections between Recommendations and FastCatrsquos business objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

I Background - FastCat History Business Realities

Strategies amp Core Values

[Refer to FastCat case pages 2 -6 with summary information on

1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength

amp weakness new CEO appointment and business outlook

2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos

behavioral attributes employees attitudes

3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and

quality etc

4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)

5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with

innovative and high quality solutions and c) Commitment to employees (elaborate each

point by 4 -5 bullets)

SAMPLE ndash FOR ILLUSTRATION ONLY

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 2: S12 Final Report - Sample

TABLE OF CONTENTS

EXECUTIVE SUMMARY

I Background ndash Business Reality amp Business Strategy

II Total Reward Systemsa Reward Objectives amp Strategiesb Linkage with FastCat Business Objectives

III Internal Alignmenta Organization Structure and Job Familiesb Job Evaluation Methodology selection and rationalec Recommended Internal Job Structured Process amp Administration

IV External Competitivenessa Total Reward Survey b Recommended Competitive Policy Line (s)c Integration of Internal Job Structure with competitive pay policy

V Pay For Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policyb Merit Pay Design ndash Merit Matrixc Organizational Performance Bonus ndash Balanced Scorecardd Final Integration of Individual with Pay Policy

VI Execution amp Implementationa Training Programb Communication Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

VII Appendices

1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable

SAMPLE ndash FOR ILLUSTRATION ONLY

MemoTo FastCat CEO and Executive Committee

From Name of Team

(Names of Members)

Date January 12 2009

Re Total Reward System for FastCat

Executive Summary

[Approach to this Report ndash Assume that you and your Group are Management Consultants

proposing a comprehensive Reward Solution to the Senior Management of FastCat]

[The length of the Executive Summary should be around one to two pages and include

information on

Background ndash FastCatrsquos business situation and your Grouprsquos role in this study

Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp

Business Strategies

Main Objective(s) of the study

What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp

Implementation In each Phase

Why such actions were taken

Expected benefits of such actions

What were considered but rejected

The reason why there were rejected

Key Recommendations ndash Total Reward System

Connections between Recommendations and FastCatrsquos business objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

I Background - FastCat History Business Realities

Strategies amp Core Values

[Refer to FastCat case pages 2 -6 with summary information on

1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength

amp weakness new CEO appointment and business outlook

2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos

behavioral attributes employees attitudes

3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and

quality etc

4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)

5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with

innovative and high quality solutions and c) Commitment to employees (elaborate each

point by 4 -5 bullets)

SAMPLE ndash FOR ILLUSTRATION ONLY

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 3: S12 Final Report - Sample

VII Appendices

1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable

SAMPLE ndash FOR ILLUSTRATION ONLY

MemoTo FastCat CEO and Executive Committee

From Name of Team

(Names of Members)

Date January 12 2009

Re Total Reward System for FastCat

Executive Summary

[Approach to this Report ndash Assume that you and your Group are Management Consultants

proposing a comprehensive Reward Solution to the Senior Management of FastCat]

[The length of the Executive Summary should be around one to two pages and include

information on

Background ndash FastCatrsquos business situation and your Grouprsquos role in this study

Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp

Business Strategies

Main Objective(s) of the study

What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp

Implementation In each Phase

Why such actions were taken

Expected benefits of such actions

What were considered but rejected

The reason why there were rejected

Key Recommendations ndash Total Reward System

Connections between Recommendations and FastCatrsquos business objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

I Background - FastCat History Business Realities

Strategies amp Core Values

[Refer to FastCat case pages 2 -6 with summary information on

1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength

amp weakness new CEO appointment and business outlook

2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos

behavioral attributes employees attitudes

3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and

quality etc

4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)

5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with

innovative and high quality solutions and c) Commitment to employees (elaborate each

point by 4 -5 bullets)

SAMPLE ndash FOR ILLUSTRATION ONLY

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 4: S12 Final Report - Sample

MemoTo FastCat CEO and Executive Committee

From Name of Team

(Names of Members)

Date January 12 2009

Re Total Reward System for FastCat

Executive Summary

[Approach to this Report ndash Assume that you and your Group are Management Consultants

proposing a comprehensive Reward Solution to the Senior Management of FastCat]

[The length of the Executive Summary should be around one to two pages and include

information on

Background ndash FastCatrsquos business situation and your Grouprsquos role in this study

Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp

Business Strategies

Main Objective(s) of the study

What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp

Implementation In each Phase

Why such actions were taken

Expected benefits of such actions

What were considered but rejected

The reason why there were rejected

Key Recommendations ndash Total Reward System

Connections between Recommendations and FastCatrsquos business objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

I Background - FastCat History Business Realities

Strategies amp Core Values

[Refer to FastCat case pages 2 -6 with summary information on

1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength

amp weakness new CEO appointment and business outlook

2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos

behavioral attributes employees attitudes

3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and

quality etc

4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)

5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with

innovative and high quality solutions and c) Commitment to employees (elaborate each

point by 4 -5 bullets)

SAMPLE ndash FOR ILLUSTRATION ONLY

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 5: S12 Final Report - Sample

I Background - FastCat History Business Realities

Strategies amp Core Values

[Refer to FastCat case pages 2 -6 with summary information on

1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength

amp weakness new CEO appointment and business outlook

2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos

behavioral attributes employees attitudes

3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and

quality etc

4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)

5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with

innovative and high quality solutions and c) Commitment to employees (elaborate each

point by 4 -5 bullets)

SAMPLE ndash FOR ILLUSTRATION ONLY

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 6: S12 Final Report - Sample

II Total Reward System

FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY

Objectives Support business strategy

Attract amp retain talent

Minimize increase in fixed costsTreat all employees fairly

Alignment Flexible agile design

Egalitarian de-emphasize differences among jobs

Support career growth

Competitive position

Level Match competitors on base

Mix Emphasize worklife components eg flexi time good benefits

Performance Individual performance (merit)

Share team success (Bonus amp Stock)

Execution People have choices

Open communication

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 7: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

FastCat Strategic Map

Dimension 1 2 3 4 5

Objectives

Support business strategy Support business strategy x

Attract amp retain talent Attract amp retain talent x

Minimize increase in fixed costs Minimize increase in fixed costs x

Treat all employees fairly Treat all employees fairly x

Alignment

Flexible agile design Flexible agile design x

Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x

Support career growthSupport career growth x

Competitive Position

Match competitors on base Match competitors on base x

Work Life BalanceWork Life Balance x

Performance

Individual performance (merit) Individual performance (merit) x

Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x

Execution

People have choices (Flexible Benefits)People have choices (Flexible Benefits) x

Open communicationOpen communication x

SAMPLE ndash FOR ILLUSTRATION ONLY

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 8: S12 Final Report - Sample

II Analysis amp Evaluation

a Reward Objective amp Strategies

[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more

details Write a small paragraph on each point of your Reward Objective and Reward Strategies

and their connections to FastCatrsquos Business Objectives]

SAMPLE ndash FOR ILLUSTRATION ONLY

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 9: S12 Final Report - Sample

b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)

Reward Objectives Competitive Position Policy

Support Business Strategy ndash

Expansion to Financial Service

Include Financial Services Co in Comparator Group

Attract amp Retain Talent Attain Competitive Total Compensation position at 75

Percentile (Q3)

Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market

Media only

Treat all employees fairly Adopt fair equitable and transparent Performance

Appraisal System

(SAMPLE ONLY)

Reward Strategies Competitive Position Policy

Hierarchical Structure to allow

for career progression

Grading Structure to allow progression amp promotion

Egalitarian Single Policy Line for all Job Families

Share Team Success Bonus amp Options award according to Group Performance

Flexible Benefits Build Flexi-Benefits System

Open Communication Mass Communication to all staff on Compensation Policy

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 10: S12 Final Report - Sample

II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing

the job responsibilities and how your team came up with the Job Families classification

Quote some of the challenges or difficulties your group encountered during the discussion

and what were the learning points gained through this analysis]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 11: S12 Final Report - Sample

II Internal Alignmentb Job Evaluation Methodology selection and rationale

Job Evaluation

[Use this space and next page to describe the process where you and your team went through the

exercise of

Reviewing and describe the various Job Evaluation Approaches available and their

relevance to FastCat

Describe the approach(s) your team decided to adopt (write a bit more on the features

of your approach eg what Compensable Factors why they were selected Scale

weighting etc) and the rationale of your decision

Describe the approach(s) your team decided NOT to adopt and the rationale of your

decision

Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos

Reward Objective amp Strategies]]

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 12: S12 Final Report - Sample

II Internal Alignment(SAMPLE ONLY)

c Recommended Internal Job Structure

Gr JE Min JE Max

1 100 170

2 171 241

3 242 312

4 313 383

5 384 454

6 455 525

7 526 596

8 597 667

9 668 739

10 740 809

SAMPLE ndash FOR ILLUSTRATION ONLY

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 13: S12 Final Report - Sample

II Internal Alignment

d Process amp Administration

[Use this page to describe the administrative process where your Group recommended regarding

Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark

Jobs Definition role of the HR Department ways and manners where Job Evaluations

are conducted approval process and endorsement by CEO etc

Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and

validation approval process and endorsement by CEO etc

Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation

Committee and off-cycle evaluation mechanism etc

Communication Plan ndash Outline the recommended Communication Plan to employees

on how Job Evaluation was conducted and what were the process for review and

appeal to evaluated scores etc]

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 14: S12 Final Report - Sample

III External Competitiveness

a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies

Competitive Metrics Market Data Analysis and Regression Analysis (this section should

take 2-3 pages))

[Use this page to describe the process where your Group conducted the competitive survey

Selection of Benchmark Jobs ndash What were selected and why (give some example)

what were not selected and why (List Benchmark Jobs in Appendix)

Job Matching ndash List out all Market Benchmark Jobs selected why were they selected

(based on what criteria) and matched with FastCat (Use a table)

Comparator Companies ndash What were selected (list) and why What were considered

but not selected (list) and why (List Companies in Appendix)

Aging of data ndash what percentage was used and why

Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg

Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for

why did your group chose these approaches and were they in line with the Reward

Objectives

Regression Analysis ndash Show your regression graph

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 15: S12 Final Report - Sample

III External Competitiveness

b Recommended Competitive Policy Line (s)

SAMPLE ndash FOR ILLUSTRATION ONLY

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 16: S12 Final Report - Sample

III External Competitiveness

c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also

explain the relationship between min and max of salary structure and the mid point

progression Remember to state that this salary structure is competitive with the market

FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro

1 100 170 11500 15330 19160 67

2 171 241 14410 19160 23950 66 25

3 242 312 18010 23950 29940 66 25

4 313 383 22510 29940 37430 66 25

5 384 454 26200 37430 48660 86 25

6 455 525 32750 46790 60830 86 25

7 526 596 40940 58490 76040 86 25

8 597 667 51180 73110 95040 86 25

9 668 739 63970 91390 118810 86 25

10 740 809 79970 114240 148510 86 25

SAMPLE ONLY

V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy

Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional

cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases

(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these

exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)

SAMPLE ndash FOR ILLUSTRATION ONLY

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 17: S12 Final Report - Sample

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 18: S12 Final Report - Sample

V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix

Briefly describe the rationale behind the design of the Merit Grid to reflect

Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)

Average Performers and d) Below Average Performers

Rationale for different Merit for staff with same Performance Rating but whose salaries

are in different quartile

Outline your recommendation to those whose salaries already exceeded grade maximum

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 19: S12 Final Report - Sample

V Pay for Performance ndash Implementation amp Execution

c Organizational Performance Bonus ndash Balanced Scorecard

Outline the various components in measurement of Company Performance and the Performance

Bonus Scheme

Objectives and design of Corporate Performance Bonus Scheme

o Retain and motivate talent

o Pay for Performance philosophy

o Differentiation between the Better Performers and the Average Performers

Evaluate corporate performance using Balanced Scorecard

o Why Balanced Scorecard

o Linkage between FastCat business objectives and Performance Metrics

o Rationale for selection of Metrics

Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale

SAMPLE ndash FOR ILLUSTRATION ONLY

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 20: S12 Final Report - Sample

V Pay for Performance ndash Implementation amp Execution

d Final Integration of Individual with Pay Policy

Outline the various other Performance Based Incentive Schemes and the implementation plans

Group Performance Bonus Scheme

Stock Option Plan

Stock Purchase Plan

Long Term Cash Incentive

Final Integration Adjustment

If you have made adjustment to the compensation package to any of the 25 employees up to

this stage describe your Grouprsquos recommended actions towards these exceptional cases

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 21: S12 Final Report - Sample

VI Execution amp Implementationa Training Program

Outline the various Training programs designed for different Stake Holders

Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training

on their role to evaluate and approve future proposals on Compensation amp Benefits programs

Training of Managers ndash objective measurement of employee performance through

Performance Appraisal System and training in Coaching for Better Performance

Training for Employees in developing Performance Objectives based on Company Balanced

Scorecard Metrics

SAMPLE ndash FOR ILLUSTRATION ONLY

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 22: S12 Final Report - Sample

VI Execution amp Implementationb Communication Plan

Outline the key elements of Mass Communication Plan on launching the Total Reward System

Rationale for the new plan

Features of the plan

Intended benefits for employees

Future staff involvement via Compensation Committee

On-going evaluation of Total Reward Plan

SAMPLE ndash FOR ILLUSTRATION ONLY

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 23: S12 Final Report - Sample

Recommendation

Based on the foregoing analysis and evaluation the Group would like to seek management

approval to the proposed Total Reward System that includes

1 Job Family amp Job Evaluation of Benchmark Positions

2 Internal Grading Structure

3 Salary Structure

4 Merit Scheme

5 Bonus Scheme

6 Other related Performance Bonus Plans (if applicable)

7 Adjustment of individual employees compensation package (If applicable)

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 24: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY DO NOT COPY

APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS

Defining Compensable Factors

1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through

implementation the company will create a competitive advantage and higher profits

2 Team orientation Promote collaboration across divisions to achieve value-added results for the company

and its clients by taking account of the interests of all parties involved

3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular

markets industries functions and customer needs Ability to analyze data and apply critical thinking to

facilitate problem solving

4 InnovationInitiative Provide creative solutions and improve processes through imagination independent

thinking autonomy careful analysis and positive risk-taking

5 Leadership Degree to which the position oversees or influences other employees

6 Decision Making Degree to which judgment is required to address typical problems associated with the

position and the impact that these decisions will have on the business

7 Education amp Experience Identifies and measures the minimum level of education andor job-related

experience needed to fulfill the requirements of the position

Scaling Compensable Factors

Compensable Factor Weighting (Point value) Range of Degree

1 Customer Focus 20 percent [32 points] 1-5

2 Team Orientation 20 percent [32 points] 1-5

3 Technical Knowledge 20 percent [32 points] 1-5

4 InnovationInitiative 10 percent [16 points] 1-5

5 Leadership 10 percent [16 points] 1-5

6 Decision Making 10 percent [16 points] 1-5

7 Education amp Experience 10 percent [16 points] 1-5

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 25: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES

Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the

highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation

the company will create a competitive advantage and higher profits

Degree Point

Value

Total

Point

Description of Characteristics

1 32 32 Has very little or no direct contact with outside customers Works with appropriate

internal ldquocustomersrdquo

2 32 64 Interacts with customer when managing calls and mail for manager Can

appropriately handle confidential information Conducts job responsibilities with

understanding that customer service and an external customer-focused orientation is

important

3 32 96 Improve customer awareness of market trends and product innovation

Communicates with clients regarding contract concerns fulfills customer client

software satisfaction and maintains relationship through excellent services

knowledge with the client Does not make independent client decisions and

addresses technical problems by routing customer to correct staff member

4 32 128 Communicates and responds to changes in customer needs reviews plans with

client Responsible for all interactions between customer and field support and

develops procedures for handling customer complaints Focus on development

usability and interaction from the end-userrsquos perspective

5 32 160 Produces business plans that target client needs Directs product direction Analyzes

new markets to pursue and attracts new clients Strong interpersonal written and

presentation skills Ability to develop trustworthy relationships Able to define key

customer needs and deliver top quality product in a timely reliable fashion

Manages client relationships and software implementation

NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 26: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 3 JOB EVALUATION BY JOB FAMILY

[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points

and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

Marketing Dept

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 27: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 4 COMPANY-WIDE JOB MAP

[Use a table to list out all positions by order of points scored (Highest first in descending order)

listing the Compensable Factors Scale Points and total Points scored]

Weighting

Point Value

Factor A

(40)

64

Factor B

(30)

48

Factor C

(20)

32

Factor D

(10)

16

Total

(100)

160

All Positions

Position 1 5 320 5 240 5 160 5 80 800

Position 2 3 192 3 144 3 96 3 48 480

Position 3 1 64 1 48 1 32 1 16 160

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 28: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 5 SAMPLE WORK EVALUATION FORM

Compensable Weight Degree   Point   Total

Factor 1 2 3 4 5 X Value = Points

Customer Focus 20         32 160

Technical Knowledge 20         32 160

Team Orientation 20         32 160

Innovation 10         16 80

Leadership 10         16 80

Decision Making 10         16 80

Education amp Experience 10         16 80

100Total

Points  800

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 29: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE

INVOLVEMENT

Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis

i) Choose a representative sample of benchmark jobs

ii) Use the content of these jobs as basis for

compensable factors

1048707 Job incumbents work with functional heads to

formulateupdate job descriptions

1048707 Evaluation Committee to determine representative

job sample

Step 2 Determine compensable factors

i) Consider business strategy and values

ii) Consider the work itself

iii) Narrow the list

iv) Refine definitions of compensable factors

1048707 Evaluation Committee to propose

compensable factors based on considerations of

business strategy and job sample

1048707 Evaluation Committee to finalize compensable

factors and their definitions proposed by employee

team

Step 3 Scale the compensable factors

i) Use specific job examples as anchors for developing

continuum

1048707 Evaluation Committee to develop scales for

compensable factors

Step 4 Weight the factors

i) Weight factors based on their relative importance to

business strategy

1048707 Evaluation Committee to determine factor

weightings

1048707 CEO approval of the final plan is required to finalize

Step 5 Apply the plan to non-benchmark jobs

i) Determine the jobrsquos rating on each compensable

factor scale

ii) Obtain weighted total points using defined factor

weights

iii) Approve evaluation results

1048707 Functional heads work with HR to determine

ratings of a particular job

1048707 HR in charge of calculating total points and

determining internal structure

1048707 Approval of final evaluation results is required

from the following groups to take effect

o Top management eg CEO

o Evaluation Committee

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 30: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 1 Define objectives of communication program

Define program objectives as the following

1048707 Ensure employees fully understand the link

between their pay and the new business strategy

1048707 Change expectations about pay differentials among

functions (esp Engineering and Marketing)

1048707 HR and senior management to determine objectives

of compensation communication program

Step 2 Obtain information

Obtain information about current perceptions about

compensation through

1048707 Opinion surveys on compensation

1048707 Focus groups

1048707 HR to administer census opinion surveys analyze

data and share results with work group managers

and employees

1048707 Each focus group should comprise of cross-Functional

employees led by a member of the

compensation committee and a senior executive

Step 3 Develop the communication strategy

Develop a communication strategy based on employee

attitudes to accomplish communication objective

At this point a communication approach which

provides technical specifics about the pay structure

seemed most appropriate

1048707 HR to develop communication strategy based on

survey and focus group data

1048707 HR work with functional managers to communicate

and explain specifics about the following

o Work evaluation process

o Compensable factors scales and weights

o Link between pay determinants amp business strategy

o Range of incumbentrsquos present job and for all the

jobs in a career path to which employees can logically

aspire

Step 4 Determine the media

Determine the most effective media to communicate

1048707 General meetings Departmental meetings

Electronic newsletters Letters sent to home address

1048707 HR with the help of Public Relations to determine

appropriate media

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 31: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

APPENDIX 7 COMMUNICATION PLAN

Step in Communication Cycle Employees Involvement

Step 5 Conduct sessions

Level of detail and emphasis of the message should

vary depending upon the audience

1048707 Executives emphasis on strategic implications

1048707 Managers emphasis on both pay components and

motivational effect

1048707 Employees emphasis on both details of pay

components and procedural justice

1048707 Communication sessions should be led by HR and

functional managers with significant visibility of

top management

Step 6 Evaluate program

Evaluate success of communication program based on

objectives of clarifying link between pay and business

strategy and changing expectations Possible tools for

evaluating program include

1048707 Post-communication attitude survey

1048707 Focus groups

1048707 HR to administer post-communication attitude

survey analyze data and share results with senior

management work group managers and employees

1048707 Focus groups should comprise of cross-functional

employees and led by members of Evaluation

Committee HR and senior management

SAMPLE ndash FOR ILLUSTRATION ONLY

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY

Page 32: S12 Final Report - Sample

Note ndash This is just an example for illustration purpose ONLY Do NOT Copy

Please add all relevant appendixes from Phase II and Phase III

SAMPLE ndash FOR ILLUSTRATION ONLY