A major publishing corporation was planning to merge their digital lines of business with the traditional print media business. Decisions had already been made regarding the departments from the two separate entities that were to be merged, and the key roles that would likely be impacted. The business sought assistance in assessing and addressing the compensation impact of this major organizational and business paradigm shift. The project encompassed all management levels below the C-suite.
Initial efforts focused on understanding and documenting the organizational changes and consequent changes to the scope of responsibilities of the targeted positions. It was critical to identify how the organizational changes would impact the managers’ functional areas of responsibility, size of staff and budget, and how closely aligned was this function to the strategic vision of the corporation (still operational in nature with little change vs. expected to be a significant driver of revenue).
A visual representation of the new organizational structure and job hierarchy was developed and confirmed with senior management. Management jobs were then benchmarked to industry compensation surveys to determine the total cash compensation targets, and a gap analysis was performed for the incumbent managers. The analysis was then overlaid with the organizational analysis, and a set of recommendations to either adjust or freeze salaries and bonus targets was presented to the executive team.
Despite the continual moving parts of the organizational change, the hands-on approach which engaged many levels of management to obtain the insights needed for the compensation analysis was a success. Following the study and recommendations, the organization’s Compensation Manager would be able to update the master job hierarchy based on subsequent changes to job assignments and therefore be able to assess whether base and variable pay levels would no longer be consistent with their overall pay program and strategy.