There are 5 main factors to consider when establishing the compensation system.
First, how the Pay Level will be fixed?
Second, how is the PayStructure?
Third, How is the Pay Mix for each item breakdown?
Fourth, What are the Pay contributors for each item breakdown?
And finally, how will the Pay Group and Eligibility are divided?
From experience with the case of many domestic corporations, we know that simply deriving conventional Global Practice alone can not provide a successful compensation system due todifferences in the philosophy, history, legal and institutional environment of our compensation system compared to the Western world. For example, even by just looking at the Market Salary Survey by the so -called Global Vendors, we can conclude that their findings are in many times useless in our case because unlike the “job value”-based system in the Western world, we have a “job title and rank”-based compensation system and other issues such as variable wage item characteristics. A clear understanding of the market and the company’s unique Legacy must proceed for a reasonable approach to system transition, and through this, ultimately, we can establish a compensation system where the effect of motivation is maximized.
HCG provides Best Practice by aiding in establishing a customized compensation system based on a clear understanding of the domestic compensation system as well as utilizing the Global Compensation Vendor to further establish the necessary policies and operational programs.