Success Stories
IBM - WORKFORCE COMPENSATION PLANNING
Compensation programs are of strategic importance to organizations where human resources play an important part in attaining the objectives of the company. Those with critical skills must be rewarded competitively with the labor market so that outstanding performance is appreciated, retention is increased, and recruiting costs are decreased. Ideally, companies wish to increase at the greatest rate the salaries of top- tier performers whose salaries may be low relative to their peers. Low or marginal performers who already receive a relatively high salary should receive little or no raise.
Quantum Leap created a Compensation Planning System for a Fortune 100 computer industry giant. The system creates salary increase grids for each skill class. These grids are then simulated over the entire employee database to calculate their impact on the compensation budget. If the increase is not within the limits mandated by Finance, the system explores a new set of grids until a viable set is found.
In the example above, persons in Quartile I of the grid are not adequately compensated relative to their peers, and will, therefore, be given larger raises faster, especially if they are A performers. Those in Quartile IV are compensated well and do not receive a pay increase if they are poor performers.
Salary increases are now distributed more effectively and the planning process has been reduced from months to weeks.
IBM - WORKFORCE STRATEGIC PLANNING
Workforces are dynamic, ever growing or shrinking and constantly changing in age, skills and other demographics. Continuous measurement and proactive planning can help shape the workforce of the future. Quantum Leap assisted a computer industry giant address its sky-rocketing labor costs caused by phenomenal growth in its service business.
Quantum Leap created a system that modeled the companies current workforce, future workforce, attrition and promotion rates, external labor availability, employee productivity and retaining capacity and costs. The system answered queries such as
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•What happens to labor costs if IT salaries increase by 10% each year?
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•Which location/country has the capacity, skill to implement this project?
Is it the best value? -
•Is firing and rehiring more cost effective than retraining?
In the area of workforce planning, Quantum Leap has also created a system for an Air Force client that compares the effect of staffing a base with Reserve personnel instead of Active Duty. Some factors considered included accessibility, capability, operating cost, lifecycle cost and infrastructure cost.
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