The frustration from line managers was palpable as their call for action had not been heeded. The company already participated in remuneration and benefits surveys and the reward structure was being adjusted on an annual basis to ensure it remained competitive. If this was indeed the case, why then were their more seasoned engineers walking out the door because of compensation?

This situation was leading to increased distrust in both the survey data and in HR. Surely the market was moving much faster than what the survey provider could keep up with, putting its reliability and validity into question - the data did not support what the line managers felt was the actual market reality.

This issue directly impacted the business’ strategic plans of building specific R&D capabilities in that market. So, the HR team was keen to address this issue as it sought to build its credibility with the business amidst the function’s own HR transformation journey to elevate itself more as a strategic partner. But without supporting evidence, securing approval at Group level to sanction a significant change in the pay structure was proving to be challenging, the HR team sought assistance to address the following questions:

Is our pay structure competitive?
If so, what is driving the turnover amongst our seasoned engineers and,
How can we address the issue?

Insights