Pretium Pay & Performance Survey
Rationalize Costs and Increase Efficiency - Where to Start?
The uncertain economic outlook and recent layoffs have prompted organizations to adopt a more cautious approach to total staff costs while refocusing on productivity. Assessing the return on investment of staff costs and aligning pay positioning with business performance will help companies optimize their compensation strategies and facilitate pay differentiation.
Pay and Performance Benchmarking
This analysis evaluates the company's business performance and total compensation rankings among industry peers, ensuring the alignment between pay positioning and performance. The core of the analysis is to systematically examine the relationship among staff cost, revenue and profitability by quantifying revenue or profit before tax generated per dollar of total compensation. Through evaluating the return on investment of staff costs, companies can optimize their performance management and business strategies to help enhance the overall competitiveness and operational efficiency.
Key objectives of our analysis:
- Assessing Compensation Effectiveness: By comparing total compensation against revenue and profitability, the company can intuitively evaluate the effectiveness of staff cost utilization. This helps determine whether pay positioning aligns with performance, ensuring reasonable return on investment of staff costs.
- Analyzing Pay & Performance Alignment: Integrating per capita performance and compensation data provides clear insights into the effectiveness of compensation strategies and resource allocation. This supports data-driven decisions on manpower budgeting, staff mix planning, salary adjustments, and incentive distribution.
- Setting More Reasonable Performance Targets: By understanding the aggregate and per capita performance levels and business scales of peers, the company can come up with a more reasonable goal-setting. This helps optimize performance management, pay positioning, and business strategies.
- Optimizing Cost Structure and Operational Efficiency: The analysis pinpoints businesses with excessive costs or low efficiency, enabling staff cost optimization to enhance operational efficiency and profitability.
Our comprehensive analysis encompasses the following indicators:
- Aggregate and per capita revenue
- Aggregate and per capita profit (or loss) before tax
- Return on Equity (ROE)
- Aggregate Assets Under Management (AUM)
- Aggregate and per capita total fixed pay
- Aggregate and per capita total incentives
- Aggregate and per capita total compensation
- Total compensation ÷ income
- Total compensation ÷ profit before tax
The per capita pay and performance analyses divide aggregate data by total headcount, reflecting the revenue and profit generated by each employee alongside the associated compensation costs, regardless of company size. This evaluation helps assess employee productivity and determine whether the allocation of the total compensation budget is reasonable, ensuring that the compensation strategy aligns with business objectives.
Our Competitive Edge
Comprehensive Data Sources: Our benchmarking includes data from both private and publicly listed companies, ensuring a broad and relevant perspective. We employ a multi-pronged data collection approach, which includes custom-designed questionnaires and public disclosures from listed firms.
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Integrated Performance and Compensation Analysis: We combine performance benchmarking with compensation analyses to differentiate pay positioning for businesses at various stages of development.
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Expert Consultation and Support: Our team of experienced consultants provides customized guidance, helping clients interpret data and implement effective compensation strategies tailored to their unique needs.
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Timely Market Insights: Clients benefit from access to timely market trends and data updates, enabling them to make informed decisions that reflect the latest developments in compensation practices.
Please contact us at +852 3996 7868 or info@pretium-asia.com to participate in the survey and discuss customized report alternatives.