Page:      1   2   3   4

Newell Rubbermaid executives Jennifer Eck, international HR manager, Sanford, and Tom Nohl, vice president of compensation and benefits Photography by Alec Huff

In 2001 — against a backdrop of international expansion, growing competition and increasingly diverse lines of business — Newell Rubbermaid paused to take stock of its compensation structure and policies. The findings? In most of the countries there was no consistent grading system or salary structure. As new companies were being acquired, decisions about salary budgets and staff changes jeopardized speedy integration.

For Newell Rubbermaid, a company set on continued acquisitions and improved operating efficiencies during global expansion, a structured system was necessary. In a proactive approach to preserve employee morale, bolster retention and improve administrative efficiency, the organization turned to Watson Wyatt to help create a comprehensive salary administration system using its Global Grading System™.

A consumer powerhouse in the making

A Fortune 300 company with nearly 50,000 employees worldwide, Newell Rubbermaid (NYSE: NWL) makes everything from strollers and power tools to picture frames and pens. Logos for Calphalon, Little Tikes, Sharpie and other well-known brands adorn its headquarters. The company's products touch millions of consumers at home, work and school and in airports, hotels and other commercial venues.

Although the organization marked its 100th anniversary in 2002, it has achieved much of its reach only recently, with seven major acquisitions in the past five years alone. Of greatest impact were the purchases of Rubbermaid in 1999 and the Gillette Stationery Products Group (SPG) in late 2001; the SPG acquisition added 10 locations in the Asia-Pacific and Latin American regions.

This rapid growth, paired with a more competitive consumer landscape in a sagging economy, required a closer examination of compensation and benefits activities throughout the organization. To meet business goals, the company had to retain key talent, attract the best available new talent and maximize productivity. As it made acquisitions, the organization needed to eliminate administrative waste associated with differences in pay practices and related HR policies. And perhaps most important, it needed a cohesive, equitable compensation policy to help build a unified corporate culture.

In the United States, Newell Rubbermaid had a standardized, market-based system in place to ensure competitive pay. With the addition of key business segments in Asia and Latin America, those regions' compensation practices needed a similar structure.

"We believe in providing our employees with compensation that is locally competitive and fair across the entire company," says Tom Nohl, vice president of compensation and benefits. "As the company began to grow more rapidly, it was evident that we needed to be more culturally unified through consistency in our compensation approach. In the Asia-Pacific and Latin American regions, we began looking for a salary administration system that would work together with the corporate performance management process."

To determine how much work was needed to achieve that goal, Newell Rubbermaid wanted an in-depth analysis of compensation and benefits programs in these regions. Nohl turned to Watson Wyatt for help.

Acquisitions 1973 EZ Paintr Corp. (paint applicators) 1982 BernzOmatic (hand torches) 1983 Mirro Corporation (cookware) 1987 Anchor Hocking Corporation (glassware and cookware) 1992 Sanford (Sharpie, Sanford and Expo; Intercraft [picture frames]) 1993 Levolor, Goody and LeeRowan 1996 Holson Burnes (thereby becoming the world’s largest manufacturer of picture frames, framed art and photo albums) 1997 Kirsch (branded drapery hardware and custom window coverings) 1998 Calphalon Corporation (high-quality cookware) 1999 Rubbermaid (Rubbermaid, Curver, Little Tikes, Graco and Century) 2000 Gillette Stationery Products Group (Paper Mate, Parker, Waterman and Liquid Paper) 2002 American Tool Companies (Irwin, Vise-Grip and Quick-Grip) 2003 American Saw & Mfg. Co. (Lenox)

Page:      1   2   3   4

return to top