A leading healthcare MNC drives internal equity and performance differentiation

A leading international pharmaceutical and healthcare organization which had started operations in the country four years ago was facing issues of internal

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equity of compensation. It had scaled up its operations over this period and the hiring had

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been predominantly market driven. This had led to a wide spread of salaries across same grades in the company. Year on year the merit increases had compounded the problems with wide differences between the earnings of strong performers. IN3X was brought on board to develop a structured approach to compensation. We started by understanding the compensation approach followed by leading players in the market as well as analyzing the market benchmark data. The corporate positioning philosophy was analyzed and the inputs were used to establish compensation ranges to ensure consistent and equitable fitment of staff in each career level. Simulation scenarios were worked out to understand the implication of implementation from a cost and motivation perspective and a holistic set of fitment guidelines were prepared regarding equity corrections, merit increases, promotion and hiring fitment. The structured compensation framework was designed in a manner to ensure that the year on year shift in market benchmarks does not impact the rationale of fitment and compensation spread.The client is in the process of implementing the recommendations in a phased manner.

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