Grading & Compensations
One of the most challenging situations that any HR Manager can face is having an argument if the organization’s employees are getting paid fairly. We at Bakkah can design a salary structure for all jobs in your organization by which you will ensure having the right pay for each job. This will help you to attract the right talents and retain the current ones. Our services include:
Job Evaluation: Each job inside the organization will be assessed and weighted by Bakkah consulting team using the point factor method in order to measure each job value to the organization. Each job will be assigned a number of points that reflect its worth to the organization based on customized criteria. Accordingly, you will be able to determine which jobs shall be paid more than the others and why.
Job Grading: Rather than having one salary grade for all the organization, companies tend to have several job grades / job families as it is much easier to apply reword, talent and performance management for grades than applying them for each job. Bakkah team can help you to determine all jobs that are weighted similarly and engaged in similar work criteria and combine them in a differentiated job grade.
Salary Benchmark: After ensuring that jobs are paid fairly inside the organization, Bakkah can help you benchmark your salary scale with organizations in similar industry at the market in order to make sure that you pay competitive salaries comparing to the market. Moreover, we will help you to determine your pay philosophy either to lead, match or lag the market.
Salary Structuring: we will help you to determine the salary range (minimum, midpoint and maximum) for each grade and most importantly, we can provide you with customized solutions to those who are above or below the salary range in accordance with your pay philosophy.
Most companies find it challenging to achieve this strategic alignment because they are unable to design, implement, or manage the total reword plans that they desire. This inconsistency between Total Rewards Strategy and business strategy can negatively affect employee’s productivity and effectiveness and ultimately result in lost revenue, lower margins, and higher costs. From short term bonus to long term shares, we at Bakkah can effectively align the required performance results with organization’s strategy by understanding the business strategy, KPIs and employee needs then identifying and designing a customized total rewords plan. We proudly helped our clients to align their rewords cost with business results building a performance-oriented culture where high performance results are reworded and employee engagement is increased. Our incentives services include:
Short-Term Incentives: our consulting team will help you to select the best incentive plan to achieve short term results. Those incentives can be sales commissions, annual bonus, cash recognition awards, project bonus or any other incentive that is related to a 6 month to one-year objectives. Normally short-term incentives can be utilized to attract new hires, retain and engage current employees.
Long-Term Incentives: for organizations that are interested in achieving medium to long term goals, finding the right incentives and identifying the right goal for long-term incentive can be complicated, especially when you need to avoid duplication with short-term rewards.
We at Bakkah can help you identify and design long-term incentive plans effectively to create a clear, competitive advantage. Long term incentive plans are used to attract and retain key leaders at the organizations to let them focus on long-term goals and build the sense of ownership of achieving those goals. As long-term incentives employers can choose from a variety of stock-based plans, including stock option, restricted stock and performance-based stock plans in addition to the cash plans.
Benefits Programs: Benefits programs are non-financial incentives that can be provided to employees either by law or upon achieving agreed targets. The costs of benefits have grown faster in most companies than any other cost factor. This is why we at Bakkah assess current benefits provided against both organization and employee needs. Then we design the most cost-effective and employee needs oriented benefits program in alignment with labor law and required performance targets.
Executive Compensation: there is no best practice for executive compensation. A good way to think about it is as a long-term agreement between the organization and the executive team member by which the executive team member will receive a certain combination of short & long-term incentives and benefits against specific agreed criteria that can be time or performance oriented. As it looks like, normally it is quite complicated program to be established. Based on our understanding of your business, Executive Compensation philosophy and strategy, we at Bakkah can design the right combination of compensations & benefits for your executive team in alignment with your organization strategy and in cost effective manner.
The key benefits of grading & compensations are:
- Provide a systematic way in jobs evaluation and grading.
- Increase employee engagement, satisfaction and performance.
- Enable organizations to benchmark their salaries with the market.
- Build a performance-oriented culture.
- Develop benefits programs and executives’ compensations.
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