About project

Client: Chemical Products Manufacturer

Project Description: Benchmark and redefine base salary, premium pay, pay progression and variable compensation programs


Client organization came into being through divestiture by global fortune 500 company.  Existing human resource management systems, programs and practices, while appropriate and internally consistent when part of a large global organization, were not focused upon the prevailing practices within the local and regional economy for similar employers.  The challenge was to review all base salary, salary progression, premium pay and variable pay programs against local and regional norms for the industry, propose changes that would improve the local/regional competitiveness of compensation structures, and improve both the strategic relevance and cost-effectiveness of program design and administrative practices.


  • Worked with senior management to identify existing challenges and establish an appropriate compensation philosophy and strategy for the organization
  • Conducted comprehensive benchmarking of base salary, variable pay and premium pay norms of similar employers locally and regionally
  • Developed comprehensive base salary structure for the organization (inclusive of executive and hourly production positions) based upon appropriate local, regional and national norms
  • Revised normal progression schemes for appropriate job classes to ensure competitiveness within local economy and appropriateness to the human resource needs of the enterprise
  • Revised bonus and incentive plan structures to ensure strategic relevance to stated goals and objectives as well as appropriateness to norms for similarly sized and located organizations
  • Established performance evaluation tools and forms to support pay progression and incentive plan requirements
  • Assisted management make key revisions to applicable human resource policies and procedures as well as the introduction of several new programs of strategic relevance
  • Provided recommendations and support to management in communicating the changes made to the compensation programs


  • Base salary structure
  • Progression plans for specific job classes based upon prevailing practices
  • Integrated performance incentive plan
  • Performance appraisal program design, tools and forms
  • Associated policy and procedure statements


This project resulted in significant reshaping of the client’s compensation programs and practices in ways that improved both the strategic relevance and cost-effectiveness of those programs, improved sensitivity to prevailing local and regional practices, and assisted in establishing a unique culture within the company that is separate and apart from that of its previous parent corporation.