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Ensuring success

Nohl's team worked with Watson Wyatt to develop a first-rate communication plan to roll out the new compensation system. The packages included manager tool kits featuring presentations for managers and employees, an explanation of the system, the Newell Rubbermaid Salary Administration Guidelines and a list of frequently asked questions.

Presentations were delivered in English, with local languages used on-screen and in the brochures.

To help ensure fair, ongoing administration, each manager also received a location-specific salary increase matrix, which provides structure while allowing flexibility in pay decisions.

"It's important to listen carefully to understand the function of each job within the organization," Eck says. "We had to constantly remind the managers — and ourselves — that we were grading the job and not the employee. Once that perspective sank in, the value to everyone was clear."

Final marks

Managers in Asia-Pacific and Latin America are thrilled with Newell Rubbermaid's new system. Administrators quickly learned to appreciate a system that sets boundaries and guidelines.

"For organizations in a high-growth mode, a salary administration system needs to be flexible and provide ongoing information," says Butler. "Newell Rubbermaid is now set up so that jobs from future acquisitions can be incorporated with relative ease, and the company has a clear view of compensation as it examines total benefits around the world."

Nohl agrees. "Our salary administration system provides the formal pay structure we needed in Asia and Latin America," he says. "It allows management to attract and retain the best talent, motivate strong performance and provide pay and grade level consistency within a location, across businesses and across countries."

What Happens Now? As part of the process of managing pay, Newell Rubbermaid plans to: Review market competitiveness on a regular basis Provide salary merit increase matrices based on market information Review and, if necessary, revise grade levels for specific jobs if the scope and responsibilities change When an employee’s salary falls above or below market, the company has certain options. (An individual’s performance is always considered before the company takes any action.) Red circle: above market Provide lump-sum payment in lieu of salary increase Defer any salary action (e.g., reviews every 18 months) Promote the individual Do not increase salary Update salary structure Green circle: below market Provide hiring rate Raise salary to the minimum through: a lump sum more frequent pay increases The Global Grading System provides defined salary structures and also serves as a guideline for pay and benefits decision-making. By incorporating data from local markets and factoring in internal equity, organizations have the flexibility to use the structure in a way that best suits their business.

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