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FastCat CorporationGroup Project Report
FastCat CorporationGroup Project Report
FastCat CorporationFinal Group Project Report
Name of Group Name of Group Member AName of Group Member BName of Group Member CName of Group Member DName of Group Member EName of Group Member F
TABLE OF CONTENTS
EXECUTIVE SUMMARY
I Background ndash Business Reality amp Business Strategy
II Total Reward Systemsa Reward Objectives amp Strategiesb Linkage with FastCat Business Objectives
III Internal Alignmenta Organization Structure and Job Familiesb Job Evaluation Methodology selection and rationalec Recommended Internal Job Structured Process amp Administration
IV External Competitivenessa Total Reward Survey b Recommended Competitive Policy Line (s)c Integration of Internal Job Structure with competitive pay policy
V Pay For Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policyb Merit Pay Design ndash Merit Matrixc Organizational Performance Bonus ndash Balanced Scorecardd Final Integration of Individual with Pay Policy
VI Execution amp Implementationa Training Programb Communication Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
VII Appendices
1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable
SAMPLE ndash FOR ILLUSTRATION ONLY
MemoTo FastCat CEO and Executive Committee
From Name of Team
(Names of Members)
Date January 12 2009
Re Total Reward System for FastCat
Executive Summary
[Approach to this Report ndash Assume that you and your Group are Management Consultants
proposing a comprehensive Reward Solution to the Senior Management of FastCat]
[The length of the Executive Summary should be around one to two pages and include
information on
Background ndash FastCatrsquos business situation and your Grouprsquos role in this study
Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp
Business Strategies
Main Objective(s) of the study
What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp
Implementation In each Phase
Why such actions were taken
Expected benefits of such actions
What were considered but rejected
The reason why there were rejected
Key Recommendations ndash Total Reward System
Connections between Recommendations and FastCatrsquos business objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
I Background - FastCat History Business Realities
Strategies amp Core Values
[Refer to FastCat case pages 2 -6 with summary information on
1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength
amp weakness new CEO appointment and business outlook
2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos
behavioral attributes employees attitudes
3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and
quality etc
4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)
5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with
innovative and high quality solutions and c) Commitment to employees (elaborate each
point by 4 -5 bullets)
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
TABLE OF CONTENTS
EXECUTIVE SUMMARY
I Background ndash Business Reality amp Business Strategy
II Total Reward Systemsa Reward Objectives amp Strategiesb Linkage with FastCat Business Objectives
III Internal Alignmenta Organization Structure and Job Familiesb Job Evaluation Methodology selection and rationalec Recommended Internal Job Structured Process amp Administration
IV External Competitivenessa Total Reward Survey b Recommended Competitive Policy Line (s)c Integration of Internal Job Structure with competitive pay policy
V Pay For Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policyb Merit Pay Design ndash Merit Matrixc Organizational Performance Bonus ndash Balanced Scorecardd Final Integration of Individual with Pay Policy
VI Execution amp Implementationa Training Programb Communication Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
VII Appendices
1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable
SAMPLE ndash FOR ILLUSTRATION ONLY
MemoTo FastCat CEO and Executive Committee
From Name of Team
(Names of Members)
Date January 12 2009
Re Total Reward System for FastCat
Executive Summary
[Approach to this Report ndash Assume that you and your Group are Management Consultants
proposing a comprehensive Reward Solution to the Senior Management of FastCat]
[The length of the Executive Summary should be around one to two pages and include
information on
Background ndash FastCatrsquos business situation and your Grouprsquos role in this study
Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp
Business Strategies
Main Objective(s) of the study
What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp
Implementation In each Phase
Why such actions were taken
Expected benefits of such actions
What were considered but rejected
The reason why there were rejected
Key Recommendations ndash Total Reward System
Connections between Recommendations and FastCatrsquos business objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
I Background - FastCat History Business Realities
Strategies amp Core Values
[Refer to FastCat case pages 2 -6 with summary information on
1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength
amp weakness new CEO appointment and business outlook
2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos
behavioral attributes employees attitudes
3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and
quality etc
4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)
5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with
innovative and high quality solutions and c) Commitment to employees (elaborate each
point by 4 -5 bullets)
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
VII Appendices
1 Appendix 12 Appendix 23 Appendix 34 Appendix 45 Appendix 56 Appendix 67 Appendix 78 Appendix 89 Appendix 910Appendix 1011Appendix 1112Appendix 1213Appendix 1314Appendix 1415Appendix 1516Appendix 1617Appendix 1718Appendix 1819Appendix 1920Appendix 20hellipand so on if applicable
SAMPLE ndash FOR ILLUSTRATION ONLY
MemoTo FastCat CEO and Executive Committee
From Name of Team
(Names of Members)
Date January 12 2009
Re Total Reward System for FastCat
Executive Summary
[Approach to this Report ndash Assume that you and your Group are Management Consultants
proposing a comprehensive Reward Solution to the Senior Management of FastCat]
[The length of the Executive Summary should be around one to two pages and include
information on
Background ndash FastCatrsquos business situation and your Grouprsquos role in this study
Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp
Business Strategies
Main Objective(s) of the study
What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp
Implementation In each Phase
Why such actions were taken
Expected benefits of such actions
What were considered but rejected
The reason why there were rejected
Key Recommendations ndash Total Reward System
Connections between Recommendations and FastCatrsquos business objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
I Background - FastCat History Business Realities
Strategies amp Core Values
[Refer to FastCat case pages 2 -6 with summary information on
1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength
amp weakness new CEO appointment and business outlook
2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos
behavioral attributes employees attitudes
3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and
quality etc
4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)
5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with
innovative and high quality solutions and c) Commitment to employees (elaborate each
point by 4 -5 bullets)
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
MemoTo FastCat CEO and Executive Committee
From Name of Team
(Names of Members)
Date January 12 2009
Re Total Reward System for FastCat
Executive Summary
[Approach to this Report ndash Assume that you and your Group are Management Consultants
proposing a comprehensive Reward Solution to the Senior Management of FastCat]
[The length of the Executive Summary should be around one to two pages and include
information on
Background ndash FastCatrsquos business situation and your Grouprsquos role in this study
Your Grouprsquos understanding of FastCatrsquos Business Objectives Core Values amp
Business Strategies
Main Objective(s) of the study
What was done ndash the 3 Phases ndash Internal Alignment External Competitiveness amp
Implementation In each Phase
Why such actions were taken
Expected benefits of such actions
What were considered but rejected
The reason why there were rejected
Key Recommendations ndash Total Reward System
Connections between Recommendations and FastCatrsquos business objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
I Background - FastCat History Business Realities
Strategies amp Core Values
[Refer to FastCat case pages 2 -6 with summary information on
1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength
amp weakness new CEO appointment and business outlook
2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos
behavioral attributes employees attitudes
3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and
quality etc
4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)
5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with
innovative and high quality solutions and c) Commitment to employees (elaborate each
point by 4 -5 bullets)
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
I Background - FastCat History Business Realities
Strategies amp Core Values
[Refer to FastCat case pages 2 -6 with summary information on
1 History ndash your Grouprsquos understand of FastCatrsquos business development time-line strength
amp weakness new CEO appointment and business outlook
2 Business Reality ndash Employee ndash strength in engineering staff talent ideal employeersquos
behavioral attributes employees attitudes
3 Business Reality ndash Customer ndash Customersrsquo view on FastCat products customer service and
quality etc
4 Business Strategies ndash (refer to FastCat case pages 6 ndash 7)
5 Core Values ndash eg ndash a) Commitment to Customer Success b) Provide Customers with
innovative and high quality solutions and c) Commitment to employees (elaborate each
point by 4 -5 bullets)
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Total Reward System
FastCatrsquos Reward Objective amp StrategiesNote ndash This is just an example for illustration purpose ONLY DO NOT COPY
Objectives Support business strategy
Attract amp retain talent
Minimize increase in fixed costsTreat all employees fairly
Alignment Flexible agile design
Egalitarian de-emphasize differences among jobs
Support career growth
Competitive position
Level Match competitors on base
Mix Emphasize worklife components eg flexi time good benefits
Performance Individual performance (merit)
Share team success (Bonus amp Stock)
Execution People have choices
Open communication
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
FastCat Strategic Map
Dimension 1 2 3 4 5
Objectives
Support business strategy Support business strategy x
Attract amp retain talent Attract amp retain talent x
Minimize increase in fixed costs Minimize increase in fixed costs x
Treat all employees fairly Treat all employees fairly x
Alignment
Flexible agile design Flexible agile design x
Egalitarian de-emphasize differences among jobs Egalitarian de-emphasize differences among jobs x
Support career growthSupport career growth x
Competitive Position
Match competitors on base Match competitors on base x
Work Life BalanceWork Life Balance x
Performance
Individual performance (merit) Individual performance (merit) x
Share team success (Bonus amp Stock) Share team success (Bonus amp Stock) x
Execution
People have choices (Flexible Benefits)People have choices (Flexible Benefits) x
Open communicationOpen communication x
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Analysis amp Evaluation
a Reward Objective amp Strategies
[Use this page to describe your Grouprsquos proposed Reward Objective and Strategies in more
details Write a small paragraph on each point of your Reward Objective and Reward Strategies
and their connections to FastCatrsquos Business Objectives]
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
b Linkage with FastCat objectives amp Strategies (SAMPLE ONLY)
Reward Objectives Competitive Position Policy
Support Business Strategy ndash
Expansion to Financial Service
Include Financial Services Co in Comparator Group
Attract amp Retain Talent Attain Competitive Total Compensation position at 75
Percentile (Q3)
Minimize increase in fixed costs Contain staff cost by limiting Base Salary to Market
Media only
Treat all employees fairly Adopt fair equitable and transparent Performance
Appraisal System
(SAMPLE ONLY)
Reward Strategies Competitive Position Policy
Hierarchical Structure to allow
for career progression
Grading Structure to allow progression amp promotion
Egalitarian Single Policy Line for all Job Families
Share Team Success Bonus amp Options award according to Group Performance
Flexible Benefits Build Flexi-Benefits System
Open Communication Mass Communication to all staff on Compensation Policy
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmenta Organization Structure and Job Families[Use this space to describe the process where you and your team went through in analyzing
the job responsibilities and how your team came up with the Job Families classification
Quote some of the challenges or difficulties your group encountered during the discussion
and what were the learning points gained through this analysis]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignmentb Job Evaluation Methodology selection and rationale
Job Evaluation
[Use this space and next page to describe the process where you and your team went through the
exercise of
Reviewing and describe the various Job Evaluation Approaches available and their
relevance to FastCat
Describe the approach(s) your team decided to adopt (write a bit more on the features
of your approach eg what Compensable Factors why they were selected Scale
weighting etc) and the rationale of your decision
Describe the approach(s) your team decided NOT to adopt and the rationale of your
decision
Ensure there are connections between your Job Evaluation approach(s) and FastCatrsquos
Reward Objective amp Strategies]]
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment(SAMPLE ONLY)
c Recommended Internal Job Structure
Gr JE Min JE Max
1 100 170
2 171 241
3 242 312
4 313 383
5 384 454
6 455 525
7 526 596
8 597 667
9 668 739
10 740 809
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
II Internal Alignment
d Process amp Administration
[Use this page to describe the administrative process where your Group recommended regarding
Job Evaluation Process ndash The composition of Job Evaluation Committee Benchmark
Jobs Definition role of the HR Department ways and manners where Job Evaluations
are conducted approval process and endorsement by CEO etc
Evaluation of Non-Benchmark Jobs ndash Role of HR Department slot-in process and
validation approval process and endorsement by CEO etc
Periodic Review Process ndash Timing and schedule of meeting for Job Evaluation
Committee and off-cycle evaluation mechanism etc
Communication Plan ndash Outline the recommended Communication Plan to employees
on how Job Evaluation was conducted and what were the process for review and
appeal to evaluated scores etc]
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
a Total Reward Survey ndash (Benchmark Jobs Job Matching amp Comparator Companies
Competitive Metrics Market Data Analysis and Regression Analysis (this section should
take 2-3 pages))
[Use this page to describe the process where your Group conducted the competitive survey
Selection of Benchmark Jobs ndash What were selected and why (give some example)
what were not selected and why (List Benchmark Jobs in Appendix)
Job Matching ndash List out all Market Benchmark Jobs selected why were they selected
(based on what criteria) and matched with FastCat (Use a table)
Comparator Companies ndash What were selected (list) and why What were considered
but not selected (list) and why (List Companies in Appendix)
Aging of data ndash what percentage was used and why
Competitive Metrics ndash which Metrics (measurements) were adopted and why (eg
Median for Base Salary and 75 for Total Compensation) ndash You must give reasons for
why did your group chose these approaches and were they in line with the Reward
Objectives
Regression Analysis ndash Show your regression graph
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
b Recommended Competitive Policy Line (s)
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
III External Competitiveness
c Integration of Internal Job Structure with competitive pay policyBriefly describe the integration of grading structure (JE points) and salary structure Also
explain the relationship between min and max of salary structure and the mid point
progression Remember to state that this salary structure is competitive with the market
FastCat Salary StructureGr JE Min JE Max Min Mid Max Min-Max Mid Pro
1 100 170 11500 15330 19160 67
2 171 241 14410 19160 23950 66 25
3 242 312 18010 23950 29940 66 25
4 313 383 22510 29940 37430 66 25
5 384 454 26200 37430 48660 86 25
6 455 525 32750 46790 60830 86 25
7 526 596 40940 58490 76040 86 25
8 597 667 51180 73110 95040 86 25
9 668 739 63970 91390 118810 86 25
10 740 809 79970 114240 148510 86 25
SAMPLE ONLY
V Pay for Performance ndash Implementation amp Executiona Adjustment of selected Individual Pay Package with Pay Policy
Briefly describe the review of the 25 employeesrsquo current salary and list out all exceptional
cases ndash Red Circle Cases (Salary exceeding Grade Maximum) and Green Circle Cases
(Salary under Grade Minimum) Describe your Grouprsquos intended actions towards these
exceptional cases (for example ndash no adjustment for now but will adjust in final stage etc)
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Executionb Merit Pay Design ndash Merit Matrix
Briefly describe the rationale behind the design of the Merit Grid to reflect
Differentiation in Merit percentages for a) Top Performers b) Above Average Performers c)
Average Performers and d) Below Average Performers
Rationale for different Merit for staff with same Performance Rating but whose salaries
are in different quartile
Outline your recommendation to those whose salaries already exceeded grade maximum
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
c Organizational Performance Bonus ndash Balanced Scorecard
Outline the various components in measurement of Company Performance and the Performance
Bonus Scheme
Objectives and design of Corporate Performance Bonus Scheme
o Retain and motivate talent
o Pay for Performance philosophy
o Differentiation between the Better Performers and the Average Performers
Evaluate corporate performance using Balanced Scorecard
o Why Balanced Scorecard
o Linkage between FastCat business objectives and Performance Metrics
o Rationale for selection of Metrics
Administration ndash Criteria for eligibility for Bonus Distribution of Bonus and rationale
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
V Pay for Performance ndash Implementation amp Execution
d Final Integration of Individual with Pay Policy
Outline the various other Performance Based Incentive Schemes and the implementation plans
Group Performance Bonus Scheme
Stock Option Plan
Stock Purchase Plan
Long Term Cash Incentive
Final Integration Adjustment
If you have made adjustment to the compensation package to any of the 25 employees up to
this stage describe your Grouprsquos recommended actions towards these exceptional cases
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationa Training Program
Outline the various Training programs designed for different Stake Holders
Member of Compensation Committee (Department Heads amp Staff Representatives) ndash training
on their role to evaluate and approve future proposals on Compensation amp Benefits programs
Training of Managers ndash objective measurement of employee performance through
Performance Appraisal System and training in Coaching for Better Performance
Training for Employees in developing Performance Objectives based on Company Balanced
Scorecard Metrics
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
VI Execution amp Implementationb Communication Plan
Outline the key elements of Mass Communication Plan on launching the Total Reward System
Rationale for the new plan
Features of the plan
Intended benefits for employees
Future staff involvement via Compensation Committee
On-going evaluation of Total Reward Plan
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Recommendation
Based on the foregoing analysis and evaluation the Group would like to seek management
approval to the proposed Total Reward System that includes
1 Job Family amp Job Evaluation of Benchmark Positions
2 Internal Grading Structure
3 Salary Structure
4 Merit Scheme
5 Bonus Scheme
6 Other related Performance Bonus Plans (if applicable)
7 Adjustment of individual employees compensation package (If applicable)
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY DO NOT COPY
APPENDIX 1 DEFINING AND SCALING COMPENSABLE FACTORS
Defining Compensable Factors
1 Customer Orientation Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through
implementation the company will create a competitive advantage and higher profits
2 Team orientation Promote collaboration across divisions to achieve value-added results for the company
and its clients by taking account of the interests of all parties involved
3 Technical Knowledge Specific accumulated knowledge and skills that are associated with particular
markets industries functions and customer needs Ability to analyze data and apply critical thinking to
facilitate problem solving
4 InnovationInitiative Provide creative solutions and improve processes through imagination independent
thinking autonomy careful analysis and positive risk-taking
5 Leadership Degree to which the position oversees or influences other employees
6 Decision Making Degree to which judgment is required to address typical problems associated with the
position and the impact that these decisions will have on the business
7 Education amp Experience Identifies and measures the minimum level of education andor job-related
experience needed to fulfill the requirements of the position
Scaling Compensable Factors
Compensable Factor Weighting (Point value) Range of Degree
1 Customer Focus 20 percent [32 points] 1-5
2 Team Orientation 20 percent [32 points] 1-5
3 Technical Knowledge 20 percent [32 points] 1-5
4 InnovationInitiative 10 percent [16 points] 1-5
5 Leadership 10 percent [16 points] 1-5
6 Decision Making 10 percent [16 points] 1-5
7 Education amp Experience 10 percent [16 points] 1-5
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 2 DESCRIPTION OF COMPENSABLE FACTOR DEGREES
Customer Orientation (20) Identifying anticipating and satisfying customer needs and desires through the
highest level of customer service By always focusing on the customerrsquos needs from RampD through implementation
the company will create a competitive advantage and higher profits
Degree Point
Value
Total
Point
Description of Characteristics
1 32 32 Has very little or no direct contact with outside customers Works with appropriate
internal ldquocustomersrdquo
2 32 64 Interacts with customer when managing calls and mail for manager Can
appropriately handle confidential information Conducts job responsibilities with
understanding that customer service and an external customer-focused orientation is
important
3 32 96 Improve customer awareness of market trends and product innovation
Communicates with clients regarding contract concerns fulfills customer client
software satisfaction and maintains relationship through excellent services
knowledge with the client Does not make independent client decisions and
addresses technical problems by routing customer to correct staff member
4 32 128 Communicates and responds to changes in customer needs reviews plans with
client Responsible for all interactions between customer and field support and
develops procedures for handling customer complaints Focus on development
usability and interaction from the end-userrsquos perspective
5 32 160 Produces business plans that target client needs Directs product direction Analyzes
new markets to pursue and attracts new clients Strong interpersonal written and
presentation skills Ability to develop trustworthy relationships Able to define key
customer needs and deliver top quality product in a timely reliable fashion
Manages client relationships and software implementation
NOTE ndash Prepare Similar Charts for all of you Compensable Factors Competencies or Skill Categories
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 3 JOB EVALUATION BY JOB FAMILY
[Use a table to list out all positions by Job Family listing the Compensable Factors Scale Points
and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
Marketing Dept
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 4 COMPANY-WIDE JOB MAP
[Use a table to list out all positions by order of points scored (Highest first in descending order)
listing the Compensable Factors Scale Points and total Points scored]
Weighting
Point Value
Factor A
(40)
64
Factor B
(30)
48
Factor C
(20)
32
Factor D
(10)
16
Total
(100)
160
All Positions
Position 1 5 320 5 240 5 160 5 80 800
Position 2 3 192 3 144 3 96 3 48 480
Position 3 1 64 1 48 1 32 1 16 160
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 5 SAMPLE WORK EVALUATION FORM
Compensable Weight Degree Point Total
Factor 1 2 3 4 5 X Value = Points
Customer Focus 20 32 160
Technical Knowledge 20 32 160
Team Orientation 20 32 160
Innovation 10 16 80
Leadership 10 16 80
Decision Making 10 16 80
Education amp Experience 10 16 80
100Total
Points 800
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 6 WORK EVALUATION PROCESS AND EVALUATION COMMITTEE
INVOLVEMENT
Step in Work Evaluation Evaluation Committee InvolvementStep 1 Conduct job analysis
i) Choose a representative sample of benchmark jobs
ii) Use the content of these jobs as basis for
compensable factors
1048707 Job incumbents work with functional heads to
formulateupdate job descriptions
1048707 Evaluation Committee to determine representative
job sample
Step 2 Determine compensable factors
i) Consider business strategy and values
ii) Consider the work itself
iii) Narrow the list
iv) Refine definitions of compensable factors
1048707 Evaluation Committee to propose
compensable factors based on considerations of
business strategy and job sample
1048707 Evaluation Committee to finalize compensable
factors and their definitions proposed by employee
team
Step 3 Scale the compensable factors
i) Use specific job examples as anchors for developing
continuum
1048707 Evaluation Committee to develop scales for
compensable factors
Step 4 Weight the factors
i) Weight factors based on their relative importance to
business strategy
1048707 Evaluation Committee to determine factor
weightings
1048707 CEO approval of the final plan is required to finalize
Step 5 Apply the plan to non-benchmark jobs
i) Determine the jobrsquos rating on each compensable
factor scale
ii) Obtain weighted total points using defined factor
weights
iii) Approve evaluation results
1048707 Functional heads work with HR to determine
ratings of a particular job
1048707 HR in charge of calculating total points and
determining internal structure
1048707 Approval of final evaluation results is required
from the following groups to take effect
o Top management eg CEO
o Evaluation Committee
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 1 Define objectives of communication program
Define program objectives as the following
1048707 Ensure employees fully understand the link
between their pay and the new business strategy
1048707 Change expectations about pay differentials among
functions (esp Engineering and Marketing)
1048707 HR and senior management to determine objectives
of compensation communication program
Step 2 Obtain information
Obtain information about current perceptions about
compensation through
1048707 Opinion surveys on compensation
1048707 Focus groups
1048707 HR to administer census opinion surveys analyze
data and share results with work group managers
and employees
1048707 Each focus group should comprise of cross-Functional
employees led by a member of the
compensation committee and a senior executive
Step 3 Develop the communication strategy
Develop a communication strategy based on employee
attitudes to accomplish communication objective
At this point a communication approach which
provides technical specifics about the pay structure
seemed most appropriate
1048707 HR to develop communication strategy based on
survey and focus group data
1048707 HR work with functional managers to communicate
and explain specifics about the following
o Work evaluation process
o Compensable factors scales and weights
o Link between pay determinants amp business strategy
o Range of incumbentrsquos present job and for all the
jobs in a career path to which employees can logically
aspire
Step 4 Determine the media
Determine the most effective media to communicate
1048707 General meetings Departmental meetings
Electronic newsletters Letters sent to home address
1048707 HR with the help of Public Relations to determine
appropriate media
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
APPENDIX 7 COMMUNICATION PLAN
Step in Communication Cycle Employees Involvement
Step 5 Conduct sessions
Level of detail and emphasis of the message should
vary depending upon the audience
1048707 Executives emphasis on strategic implications
1048707 Managers emphasis on both pay components and
motivational effect
1048707 Employees emphasis on both details of pay
components and procedural justice
1048707 Communication sessions should be led by HR and
functional managers with significant visibility of
top management
Step 6 Evaluate program
Evaluate success of communication program based on
objectives of clarifying link between pay and business
strategy and changing expectations Possible tools for
evaluating program include
1048707 Post-communication attitude survey
1048707 Focus groups
1048707 HR to administer post-communication attitude
survey analyze data and share results with senior
management work group managers and employees
1048707 Focus groups should comprise of cross-functional
employees and led by members of Evaluation
Committee HR and senior management
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY
Note ndash This is just an example for illustration purpose ONLY Do NOT Copy
Please add all relevant appendixes from Phase II and Phase III
SAMPLE ndash FOR ILLUSTRATION ONLY