Page:      1   2   3   4

“Transparency was the essential element in the delivery of the process, along with data integrity,” says Jennifer Eck, international HR manager for Sanford, a Newell Rubbermaid business.

Sharing results

In some locations, discussing personal pay is nothing short of cultural taboo. How, then, could the analysis of salary ranges and grades be introduced in a nonthreatening way? Very carefully, says Eck.

"There were some touchy moments," she admits. "Almost 90 percent of the Sanford employees, for instance, fell within the desired salary ranges. But several general managers were paid more than 100 percent of our midpoint salary range, and when they realized that, they feared for their own security. A great deal of sensitivity was needed to explain that our goal was not to take anyone's salary away — and, more important, that what we were doing would help them better manage their employees and their businesses."

Eck and Nohl made themselves available after each rollout presentation for one-on-one discussions with associates to discuss their grade and the midpoint for their grade, and to provide an in-depth explanation of the system. In addition, the team shared virtually all the data that was gathered.

"Salaries and grades are so personal," Eck notes. "Transparency was definitely the essential element in the delivery of the process, along with data integrity. Where we thought there would be resistance, we invited Watson Wyatt representatives to be the independent, third-party experts, which worked especially well in locales such as Mexico and Hong Kong."

Newell Rubbermaid: The First Century 1902 Newell Manufacturing Company Inc., a manufacturer of curtain rods, is founded in Ogdensburg, N.Y. 1910–1921 Affiliated companies are founded in Canada and Freeport, Ill. 1916 The F.W. Woolworth chain becomes the first customer for Newell’s bronze-plated curtain rods, making them the first Newell products to be distributed nationally and marking the beginning of a focus on volume purchasers. 1962 The Newell Companies, including Western Newell, Newell Window Furnishings and Newell Manufacturing, are consolidated. 1965 Daniel C. Ferguson is named president; develops multi-product acquisition strategy. 1972 Newell becomes a publicly-owned company. 1979 Newell is listed on the New York Stock Exchange with the ticker symbol NWL. 2001 Joseph Galli Jr. is named president and CEO.

If employees fell outside the salary range for their position, a decision had to be made about how they'd be treated in the new system. Newell Rubbermaid emphasized individual contributions, and decided not to decrease any salaries above the range. At the same time, they made no promise to increase all salaries below the range. (See, "What Happens Now?")

"I viewed this new process as providing guidelines," Nohl says. "We didn't want to go in and tell managers how to run their business. If they're paying a high performer above the market and they feel it's warranted, we wouldn't prevent them from giving a pay increase while waiting for the market to catch up. The real value of having the system is to be able to benchmark for 95 percent of the population, and that's what we've used it for. It gives managers a game plan to manage future salaries, and it makes their lives easier because they have something to show employees as the basis of salary decisions."

Page:      1   2   3   4

return to top