The client, based in the Middle East, was into diversified businesses such as Steel, Oil & Gas, Retail, Real Estate and Investments. The client turned to UC to review its current performance appraisal system and compensation system for its Investment and Holding company. The investment company was primarily involved in Real Estate (develop, lease/ rent, sell) business and managed investments (stocks, private equity etc.) for the promoters. The holding company had support functions like Audit, Legal, PR, Finance etc. providing guidance and support to the entire group.
To develop the performance appraisal and compensation system of the company, UC adopted the following approach:
- Built context on existing system, compensation philosophy, individual roles and responsibilities through one on one discussion with the client team
- Conducted primary and secondary research to benchmark competition practices by speaking to individuals in similar positions in likewise companies and also interacted with recruitment consulting firms
- Researched job portals and daily appointment newsletters
- Redesigned the performance appraisal system
- Defined Key Performance Indicators (KPI) and Personality Traits (PT) for each position
- Allocated weight to each parameter based on importance
- Key recommendations to the client included a framework to link the performance appraisal to annual increments and performance bonus
The client received a complete understanding of the compensation benchmarking of the industry. A newly designed performance appraisal and compensation system, along with the incremental outflow for the client was given. UC STRATEGY also recommended re-assessing of the basic remuneration for certain positions.