Overview

A successful pay structure needs to link the compensation plan to a well-developed people strategy; ensure that it is dynamic and supports the organizational compensation philosophy. The strategy should also ensure that problems around salary disparity are progressively eliminated.
Zinnov provides support in compensation structure development by identifying the strategy, evaluating jobs, ensuring equal pay, understanding market trends, and developing pay structure.

Due to our extensive knowledge on the talent capability, we have built complex models that also allow us to forecast compensation trends based on the talent supply/demand across various organizations.

The services include:

• Compensation and benefits benchmarking study.
• Job evaluation, grade and pay structure design.
• Merit review planning and administration.

Compensation and benefits benchmarking study

We conduct customized compensation and benefits benchmarking study for our clients in addition to the annual industry survey for Software product development companies.

Methodology

• The compensation survey ensures that only the right companies are targeted for benchmarking.
• Unique positions are identified and detailed job descriptions are developed for the benchmarking exercise.
• A job matching exercise is conducted based on incumbent’s key responsibilities, knowledge & skills, span of control, educational qualification, years of experience and reporting structure.
• A custom developed compensation analysis data modeler is used to collate gathered data and provide company specific in-depth analysis.
• The total remuneration approach for cash compensation analysis is used which compiles, guaranteed cash, variable pay and quantified benefits into cash value.
• The market data is analyzed using percentile positioning, including minimum, median, maximum, and average data.

Get connected

Do you wish Zinnov to get in touch with you? Please mail us at help@zinnov.com

Job evaluation, grade and pay structure design

We help organizations conduct job analysis and evaluation to define and establish the relative worth/size of the jobs in order to design an appropriate pay structure.The design considers both the market pay as well as job evaluation to provide a framework for developing appropriate pay/grade structure.

Rationale

• Provides a logical framework so as to define compensation levels.
• Determines where jobs should be placed in a hierarchy.

Criteria

• Facilitates achievement of equity, fairness and consistency.
• Facilitates operational flexibility and logical explanation to employees.

Design

• Jobs are grouped based on job analysis & evaluation in order to establish actual rates of pay.
• Compares market reference points for each job and decide on range reference point.
• Decides on range of pay around reference point

Validation

• Comparisons are done with current structure and range.
• Identifies pay differentials and impact of any pay range decisions based on existing structure.

Merit review planning and administration

Zinnov provides support for merit review compensation planning, analysis and administration of the same. Support is provided in developing compensation decisions, reports for broad-based compensation analysis and modeling at a business as well as individual level

Methodology

Prepares data sheet for compensation decisions at a Business /Individual level

• Develops reports on current compensation for each employee, as well as their Compa-ratio, performance rating, and salary range.
• Compares internal vs. market pay and review salary levels to check whether adjustments are needed to keep pace with market trends.
• Provides appropriate recommendations for developing and modeling salary structures, broad bands and market reference ranges.

Individual review decisions

Provides various analysis for review decisions both at a business as well as individual level

• Creates cost models to analyze pay increase scenarios.
• Develops fair and objective merit increase plans based on the budget, individual employee performance, and Compa-ratio.

Reviews compilation and checks budget impact

Compiles data sheets

• Compiles compensation information by drawing different salary planning scenarios and in-depth analysis of the compensation structures

Checks budget impact

• Reviews budget variances.
• Evaluates and compares the cost of multiple scenarios based on the distribution of the merit budget.
• Identifies outliers, determines and estimates the cost of out-of-range employees.

Prepares review roll out

• Finalizes and validates new pay structure and individual salaries.
• Creates individual review letters