Compensation Class

Marshall and Gordon

Compensation Case
Label 1
Label 2 Syndicate 3 :
Heda Kalenia 29116056
Langgeng Setyono 29116009
Mardian.W. 29116130
Brand 1 Brand 2 Brand 3
 Current Compensation System

1 2 3
Performance- Directors could
Principles and
based bonus give up to 10%
Partners are
are calculated additional bonus
rewarded an annual
by a 2 part based off
salary and bonus
formula: performance

Partners earn credit for No clear performance

business originated indicators in place
(O)+ executed ( E )
For projects that were split
jointly betwen 2 partners, the
partners negotiate how to
divide O and E credits
amongst themselves 2
 Problem Arise

Conflict Indicators An Evident Problem

Youve heard me say it befre but our comp system is not set up to
get you thinkingHow can I be more efficient in my use of - Executive Positioning Practice (EPP) - Faulty incentive-based pay structure
resources?. It fosters individual fiefdoms amongst our partner and A New service that leverage executive - Disincentive for collaboration
almost completely prohibits collaboration. M&G BOD- branding, communiations, and
reputation toolkits to a clients
Our current system makes collabo difficult. It rewards
entrepreneurialism, with no mitigating factors to encourage people M&G consultants work with clients CEO
to share the pie. And there are a lot of sharp elbows in this form. to create a personal communications
M&G Senior Partner- strategy that represent strength ti 3
portray the right individual profile to
 Effective Solutions
Bonus eligibility Bonus tier system Foe employee depends Performance Measure
If the employee < $280.000 gets 10% to bonus, consider their Currently gives 10%
credits are less than his bonus, > $280.000 salary as minimal bonus for excellent
salary, then will gets 20% bonus, > comparing to bonus employee
ineligible for any $560.000 get 30%
bonuses bonus o Will hard to make o Company has no
o The increasing % them share. clear paramaters
o With this policy, of bonus with the to measure
employee fears of number of o Solution:give them
o Old comp system
becoming credits will make encourages salaryhigher to o Employee
ineligible employee eager individualistics work: balance income- thought that
to move to the Eat-What-You-Kill- bonus, and bonus is bias and
o Therefore, they next higher System retention level random
will want to work bonus o We want to put less
alone and not o Theyll work emphasis on o Solution: clear
share any credits alone and not individual parameter for
with others share contribution and team projects.
o Solution: change more in collabo work
o Solution: the increasing % o Employee will
o 4 main policies in
eliminated this/ into 1 flat rate. share the
current system that
change to 25% of eliminate encourage bonusand be
salary competition individualistic work excellent
among should be eliminated
or at least be charged
employee and let
them share
credits.
1 Action Plan (Communication)
2 Action Plan (Diversity
Adviser)
Company culture is very individualistic
o Employee must be informed
Cause off conflicts: idea, opinion, culture
about all changes+understand
them Giving diversity courses/hire adviser is
beneficial
o Employee should see the link
between their efforts+company
profit. Through communication
o Employee should focus on the big
picture for benefit of the
company to increase the pie

3 Evaluation 4 Evalution
Project Tracking system: Employee Pulse Surveys:
o Show how many employee o Gauge satisfaction levels
worked on single project o Allows input/feedback from
o Data linked to performance employee
reviews/promotional
activities