Rationalize Costs and Increase Efficiency - Where to Start?The improved business performance in 2023 has inflated bonus expectations of employees. However, the uncertain economic outlook and scattered layoffs have led to more vigilant use of total staff costs and a refocus on productivity.
Assessing the return on investment of staff costs and evaluating the headcount ratios will help companies optimize compensation strategies and rationalize the manpower structure. Pay and Performance Benchmarking Pay and Performance benchmarking analysis combines performance and total compensation analysis to reflect the alignment of salary and performance and provide a basis for optimizing pay positioning. Company-wide performance and compensation benchmarking analysis includes the following metrics:
The benchmarking includes firm-wide performance such as revenue, profit, ROE, AUM and business specific revenue and profit. The per capita pay and performance analyses divide the aggregate data by the total headcount to reflect the revenue/profit generated by each employee and the related compensation costs paid by the company regardless of company size. These can assess employee’s productivity and determine whether the allocation of the total compensation budget is reasonable to ensure compensation strategy aligns with business directions. Our Competitive Edge
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