Compensation Plans

The compensation plan is grounded in the following strategic principles:

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• Align with Business Goals: Ensure compensation supports the company’s financial goals and talent needs, fostering a high-performance culture. 
   

• Attract and Retain Talent: Offer competitive compensation to attract high-quality candidates and reduce turnover.
   

• Internal Equity: Ensure fairness and consistency across roles within the organization to avoid wage disparities that can lead to dissatisfaction.
   

• External Competitiveness: Stay competitive in the market by aligning pay structures with industry standards.

A thorough market benchmarking process was conducted to ensure external competitiveness. Steps included:

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• Identifying Benchmark Roles: Core roles across functions (e.g., operations, sales, IT, marketing) were selected for benchmarking.
   

• Industry and Geographic Consideration: Data was collected from reliable salary surveys, focusing on competitors within the industry and adjusting for geographic cost of living differences.
   

• Peer Group Selection: A peer group of similar-sized companies in the same industry was identified for comparison.
   

• Data Analysis: The median, 25th, and 75th percentiles were analyzed to identify competitive compensation ranges for each role.

Based on benchmarking results, wage bands were created for each job level, ensuring both internal consistency and market competitiveness:

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• Job Leveling: Roles were categorized into levels (e.g., entry-level, mid-level, senior, executive) based on complexity, responsibility, and skill requirements.
   

• Band Structure: Wage bands were structured with a minimum, midpoint, and maximum for each level, offering flexibility for merit-based increases, promotions, and market adjustments.
   

• Pay Philosophy: The company adopted a pay philosophy that aims to place employees between the midpoint and 75th percentile of the market, depending on performance, tenure, and contribution.
   

• Annual Review Process: Wage bands will be reviewed annually to adjust for market trends, inflation, and organizational growth.

• Transparency: The new compensation plan includes a communication strategy to ensure transparency with employees, helping them understand how their pay is determined.
   

• Implementation: The wage bands were rolled out, and managers were trained to utilize the new structure during performance reviews and salary discussions.
   

• Ongoing Monitoring: The compensation plan will be evaluated quarterly to ensure it continues to meet business and talent needs and adjusts to market changes.