Below you'll find just one example of how our performance and rewards practice approaches total rewards redesign, providing the client with significant compensation cost savings over the long term.
Sibson Consulting helped a mid-range diesel engine manufacturer redesign its total rewards system for hourly manufacturing associates.
This company is state-of-the-art with a work culture heavily influenced by a team-based work system. The company’s future vision includes a facility expansion, new production lines, new products, and increased volumes, concurrent with improvements in quality and efficiency and an overall reduction in cost per engine.
The pressures resulting from a high-performance work environment, an aggressive vision for the future, underscored the need to improve the effectiveness, perceived fairness and competitiveness of the company’s reward systems.
After conducting an in-depth needs assessment of its total reward system, the company decided to use a high-involvement process in redesigning its plant goal-sharing system for its exempt and hourly employees and its performance management and base-pay systems for its hourly employees.
A steering committee comprised of senior managers was formed to develop a total rewards philosophy and to guide the redesign process.
Planning teams of hourly and salaried employees were chartered to plan employee conferences where a more than 150 employees developed ideas for redesigning the company’s reward system.
In the end, close to half of the company’s, 700 employees were involved directly in the change.
The steering committee and the company’s corporate parent finalized and approved the changes:
The company achieved the following results with its reward system changes:
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