Revolutionizing Fairness with Compensation Design by Humanology
The tension in the executive meeting room of OmniCore Technologies was unmistakable.
“Our people are leaving,” said Mr. Arif, the CEO, as he dropped a stack of resignation letters onto the table. “Five of our top performers this month alone. What’s worse, they’re joining our competitors.”
Ms. Dina, the HR Director, looked concerned. “The feedback is clear, Arif. Employees feel undervalued, and our compensation system is outdated. It’s no longer competitive or fair.”
Arif shook his head. “We can’t afford to lose more talent. Fix this, Dina. Get us the best consultants and turn this around before we bleed out.”
The Diagnosis: A Compensation System in Crisis
When Humanology, led by the renowned Datuk Dr. Leow, was brought in, they immediately identified the root cause of OmniCore’s struggles.
“Compensation design isn’t just about salaries,” Dr. Leow explained during the kickoff meeting. “It’s about creating a system that rewards performance, aligns with market standards, and motivates your workforce.”
Over several weeks, Humanology conducted a detailed audit, benchmarking OmniCore’s compensation structure against industry standards and gathering feedback through employee surveys. The findings were alarming:
- Disparity in Pay: Employees in similar roles were earning vastly different amounts, leading to resentment.
- Lack of Performance-Based Rewards: High performers felt unrecognized, while underperformers received the same compensation.
- No Non-Monetary Benefits: The company offered minimal perks or incentives, making competitors’ packages more attractive.
When Dr. Leow presented the findings, Dina sighed. “This explains so much. We’ve been trying to solve the problem without addressing the real issue—our compensation system is broken.”
Arif frowned. “No wonder we’re losing people. Let’s fix it, and fast.”
The Suspense: Overcoming Resistance to Change
Humanology proposed a Comprehensive Compensation Design Framework to tackle the crisis. However, resistance surfaced almost immediately.
During a leadership meeting, a senior manager voiced concerns. “Won’t this cost us more? We’re already tight on budgets.”
Another chimed in. “What if the new structure demotivates our existing employees? Change always causes friction.”
Dr. Leow addressed the concerns calmly. “A well-designed compensation system is an investment, not a cost. It reduces turnover, boosts productivity, and attracts top talent. We’ll ensure the transition is smooth and fair for everyone.”
Dina added, “We can’t afford not to do this. If we don’t act now, we’ll lose even more ground to our competitors.”
The Climax: Designing a Competitive and Fair System
Humanology implemented a four-phase Compensation Design Framework:
- Benchmarking and Market Analysis
Humanology benchmarked OmniCore’s pay structure against industry standards, identifying areas where the company was underpaying or overpaying.
During a workshop, a manager remarked, “It’s eye-opening to see how far behind we are in some areas. No wonder we’re losing talent.” - Tiered Compensation Structure
A transparent, tiered structure was created, with clear salary ranges for each role and level. This eliminated pay disparities and provided a roadmap for career progression. - Performance-Based Rewards
Humanology introduced bonuses and incentives tied to individual and team performance. High performers were finally recognized and rewarded for their contributions.
“This motivates me to go the extra mile,” one employee said during a town hall meeting. - Enhanced Benefits and Perks
To make OmniCore’s offerings more competitive, Humanology recommended flexible work arrangements, wellness programs, and additional leave entitlements.
The Resolution: A Motivated Workforce
Three months later, the impact of the new compensation system was undeniable:
- Reduced Turnover: Employee retention increased by 35%, and exit interviews cited the new compensation structure as a reason for staying.
- Improved Productivity: High performers were more motivated, and team productivity rose by 25%.
- Enhanced Employer Brand: OmniCore’s competitive compensation package began attracting top talent from rival companies.
During the final review meeting, Arif was thrilled. “This has completely turned things around. Our people feel valued, and the constant resignations have stopped.”
Dina added, “Humanology didn’t just fix our compensation system—they restored trust in leadership. Employees believe in us again.”
Dr. Leow concluded, “Compensation design isn’t just about paying people. It’s about recognizing their value and creating a culture where they want to stay and grow. OmniCore is now set for long-term success.”