A mid-sized technology company, experiencing significant growth, was expanding globally to meet increasing contracts and demands for building infrastructure for technology and connectivity. As the company scaled, leadership recognized a key issue: the absence of formalized pay programs and inconsistent compensation practices, which could become problematic as they expanded further and faced heightened competition for talent.
Challenge:
The company had no structured pay program, and compensation decisions were being made on a discretionary, case-by-case basis. While this approach worked in the early stages, leadership realized it could lead to inequities, employee dissatisfaction, and potential legal compliance risks, especially as the company grew and hired employees across multiple regions with varying labor laws. Concerns were raised that the lack of consistency and transparency in pay could affect retention, recruitment, and morale, and could become a liability as the company scaled globally.
Solution:
NBBS was brought in to assess the company’s entire HR function with a focus on identifying gaps and deficiencies that could impact the organization’s growth and risk profile. The approach involved a comprehensive employee life cycle assessment, evaluating key HR practices across recruitment, onboarding, performance management, compensation, and retention strategies. Key steps of the assessment included:
Compensation Review: we analyzed the existing pay practices and identified the absence of structured compensation programs, market alignment, and internal equity, which could result in inconsistencies and perceived inequities.
Risk and Compliance Assessment: NBBS evaluated how the company's current practices could expose it to compliance risks, particularly with global expansion into regions with differing labor laws and regulations on pay equity.
Talent and Retention Evaluation: The assessment also identified gaps in employee development, performance management, and retention strategies, which were crucial for a growing global workforce.
Inconsistent Pay Decisions: Pay increases and bonuses were based on personal discretion, creating discrepancies in compensation between employees in similar roles and regions.
No Formal Pay Programs: The company lacked a structured approach to compensation, making it difficult to attract and retain talent or stay competitive in the market.
Compliance Risks: The absence of standardized pay programs posed legal and compliance risks, particularly as the company expanded into international markets with specific labor laws regarding pay transparency and equity.
Limited Talent Development Programs: There was an opportunity to strengthen employee development and retention strategies to better support long-term growth.
Result:
NBBS delivered a prioritized roadmap and formal report to the leadership team, outlining critical HR needs and providing actionable recommendations to address the gaps identified in the assessment. The roadmap focused on:
Standardizing Compensation Practices: NBBS recommended the development and implementation of a formal pay structure, aligned with industry standards and ensuring internal equity. This included the creation of clear compensation bands for roles at various levels and in different regions.
Risk Mitigation: The company was provided with guidance on ensuring pay equity across regions and compliance with global labor laws, reducing the risk of legal issues and improving transparency.
Talent Development Strategy: we recommended implementing formal employee development and performance management programs to foster growth and retention, which would support the company’s expanding workforce.
Roadmap Implementation: The report also included a step-by-step action plan with timelines and priorities to help the company address immediate HR needs while laying the groundwork for long-term growth and sustainability.
By implementing the roadmap, the company was better equipped to make informed decisions regarding compensation, talent development, and overall HR strategy. The leadership team now had a clear path forward to build a structured, scalable HR function that could support the company’s ongoing global expansion and minimize risks associated with compensation and compliance.