Redesigning Fairness and Growth Through Salary Scheme Design with Humanology
The tension in the executive meeting room of CrestTech Solutions was palpable.
“The complaints are piling up,” said Mr. Daniel, the CEO, as he addressed the leadership team. “Employees are unhappy about pay disparities, and we’ve lost three top performers this month alone.”
Ms. Sarah, the HR Manager, nodded gravely. “Our salary scheme hasn’t been reviewed in years, Daniel. Promotions aren’t tied to clear salary bands, and new hires often earn more than loyal employees. It’s creating resentment.”
Daniel’s tone hardened. “This stops now. Find a way to fix this, Sarah. Bring in someone who knows how to design a system that’s fair and sustainable.”
The Diagnosis: A Fragmented Salary Structure
Enter Humanology, led by the renowned Datuk Dr. Leow. During the initial meeting, Dr. Leow wasted no time getting to the heart of CrestTech’s problem.
“Salary schemes are more than numbers,” he began. “They’re a reflection of your values as a company. Fairness, clarity, and competitiveness are essential to retaining and motivating talent.”
Humanology conducted a thorough review, benchmarking CrestTech’s salary structure against industry standards and gathering employee feedback through confidential surveys. The findings were concerning:
- Pay Disparities: Employees in similar roles were earning vastly different salaries, causing dissatisfaction.
- Lack of Transparency: Employees didn’t understand how their salaries were determined or how they could earn raises.
- Uncompetitive Pay: Key roles were underpaid compared to market benchmarks, leading to turnover.
When Dr. Leow presented the findings, Sarah looked disheartened. “I knew there were issues, but I didn’t realize they ran this deep.”
Daniel frowned. “We’ve been undermining our own team. No wonder morale is so low.”
The Suspense: Resistance to Change
Humanology proposed a Salary Scheme Design Framework to address the issues. However, resistance quickly emerged.
“Does this mean everyone’s pay is going to be revealed?” asked a senior manager during a leadership meeting.
“What if employees demand raises we can’t afford?” another chimed in.
Dr. Leow addressed their concerns. “Transparency doesn’t mean disclosing individual salaries—it means providing a clear structure that shows how pay is determined. This process will create fairness, not chaos.”
Sarah added, “We’re not just fixing the numbers. We’re rebuilding trust with our employees. It’s worth the effort.”
The Climax: Designing a Fair and Competitive Scheme
Humanology implemented their three-phase Salary Scheme Design Framework:
- Benchmarking and Analysis
Humanology conducted a detailed market analysis, comparing CrestTech’s salaries with industry standards. Employees were categorized into clear job grades based on role, experience, and skills.
During one workshop, an employee remarked, “For the first time, I understand where my role fits and how I can grow.”
- Salary Bands and Pay Progression
Transparent salary bands were introduced for each job grade, outlining minimum, midpoint, and maximum pay levels. Criteria for raises and promotions were clearly defined.
“This system eliminates guesswork,” Sarah said during the rollout. “Employees will know exactly what they need to do to advance.”
- Communication and Implementation
Humanology worked with CrestTech’s leaders to communicate the new scheme through town halls, team meetings, and individual briefings. Employees received personalized letters explaining how the new structure applied to them.
There were initial concerns from employees about the transition. One team member asked, “Will this mean pay cuts for anyone?”
Dr. Leow reassured them. “No one will see their pay reduced. This is about fairness and growth, not taking away.”
The Resolution: A Motivated Workforce
Three months after implementation, the impact of the new salary scheme was clear:
- Improved Employee Satisfaction: Surveys showed a 40% increase in satisfaction with compensation fairness.
- Reduced Turnover: Key performers stayed, and exit interviews cited the new scheme as a reason for retention.
- Enhanced Transparency: Employees reported feeling more confident about their future at CrestTech.
At the final review meeting, Daniel was visibly pleased. “This has transformed how we operate. Employees trust us again, and morale is higher than ever.”
Sarah added, “Humanology didn’t just fix our salary scheme—they helped us align it with our values. Fairness is now at the core of everything we do.”
Dr. Leow concluded, “A well-designed salary scheme isn’t just about numbers. It’s about building a culture where every employee feels valued and motivated to contribute. CrestTech is now positioned for sustainable growth.”