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Case Study 5
Entertainment and media company — Improving employee line-of-sight through incentive compensation design
Client
Challenge

“We want to foster a more aggressive pay for performance environment and provide a holistic incentive compensation approach across the entire organization”

Background

A need to transition from base salary (primarily) to base plus incentive

A need to develop incentives to be aligned with aggressive company goals

Unclear goals and objectives for many employee segments

Unclear linkage between individual roles and overall business objectives

Fragmented and unclear pay philosophy; no comprehensive pay philosophy spanning all employee groups

Activities and Results

Developed comprehensive rewards philosophy covering all employee segments across four divisions

Identified key drivers of profitability for each division/function/role

Used value tree analysis to determine appropriate performance metrics that aligned to corporate objectives

Developed an employee incentive program for all functional areas

Assessed selling prominence and clarified roles for all sales positions

Designed sales incentive plans for each selling role across four divisions

Developed plan documentation and supporting training and communications materials

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