Financial Services Organisation

Company :

Specialised segments within National Financial Services organisation. Subsidiary of Australian listed company. Employs 200.

Mandate: 

Against a background of a highly competitive labour market:

• Ascertain the suitability of the current remuneration arrangements to achieve an acceptable market position
• Ensure alignment of the total reward strategy with business plans
• Determine the correct business metrics as the most appropriate basis for measuring performance.

Background :

The company was losing some of its best performers to competitors by applying a company wide and rigid approach to remuneration management. Market forces had caused a dramatic shift in the level and type of rewards being offered to these employees.

Solution:

Following a detailed diagnostic to discover the real drivers of profitability in Business Banking in a declining property market, remuneration practices were analysed to determine the exposures the competitors were taking advantage of when poaching talent. This pointed to the specific individuals considered "at risk".

By recognizing business drivers and identifying specific revenue streams and the costs associated with them we were able to design a reward mechanism that mitigated the exposures, was self funded, had sufficient elasticity around budget outcomes and invoked a performance distribution that heavily favoured outstanding contribution.