Challenge
A leader in industrial process heating solutions, Thermon, Inc. acquired a company in Canada, however, did not have the expertise to integrate the various workstreams for both companies. Being in Canada, the acquired company had different employment laws to be considered as well. They had multiple compensation programs, which ranged from sales and customer service bonuses to holiday bonuses, sales commissions, site bonuses, and various discretionary bonuses. As with most acquisitions, consolidation in order to create synergies and cost savings became critical business objectives.
Solution
With the goal of consolidating the various compensation and benefits into the parent company, NB Business Solutions collected the bonus plans and historical data and then analyzed the data, after which it made recommendations to Thermon, Inc. We worked with the Canadian team to understand their current pay practices and compared the new company's job titles and mapped them to jobs at Thermon. We then reviewed and analyzed job grades and leveling of jobs, comparing them between the two companies. Lastly, we analyzed the cost impact to employees’ total pay.
Results
NB Business Solutions mapped employees to the parent company job structure and analyzed the total compensation in order to provide a solid recommendation to Thermon, Inc. for consolidating and integrating the various compensation programs and benefits. These recommendations resulted in consolidation of customer service, operational, and business support roles into the parent company job and pay structure. Consolidating jobs set the framework for ease in administration of many HR programs and by having one global bonus scheme, we reduced future cost for bonus payouts. In addition, we mapped sales organization to the parent company’s commission plan to reinforce a pay-for-performance culture. To ensure a smooth process, NB Business Solutions also developed a transition plan and a supporting communication strategy to bring everyone up to speed on the change.