Client Success Story #1:

Compensation Program for Silicon Valley Manufacturing Company

The client:

A small manufacturing company in Silicon Valley, (just over 50 employees) had no formal compensation program. They were hiring several new employees, as a result of growth and after losing several long term key employees.

The issue:

The client knew they needed “something”, but didn’t want a complex compensation program. Employees were paid based on what they had made in previous jobs, what they could negotiate, or what the owner/CEO “thought” the job was worth. Employees in comparable positions were paid very differently, and neither the managers nor employees understood the rationale for pay practices. The managers had little say about compensation decisions, nor were there any guidelines to assist in salary planning and annual increases tied to performance. Employees did not know what they could expect in a raise year to year. In addition, new employees were being hired at greater salaries than current employees who had been doing the same job for several years. The President felt this was not right, very likely to cause morale issues, and knew something had to be done to correct the problem now.

How we helped:

  1. We met with the President and senior management, as well as several key managers to understand the company culture, practices and the President’s pay philosophy, and clarify issues.
  2. We wrote and refined job descriptions, levels of responsibility, etc. for today’s positions and those anticipated.
  3. We did a market analysis to obtain competitive data.
  4. We created relevant, competitive salary structures and ranges.
  5. We identified individual pay issues and how best to address them.
  6. Together, we implemented plan documents, management training and employee communication
  7. We followed up with an extensive debrief and then 3 and 6 month meetings.


Managers and President unanimously felt pay decisions were fair and based on competitive market data, the employee’s performance and what the company could afford.

Managers were trained, felt more competent, and now made the decisions regarding pay adjustments (with the President’s approval).

With several key salary adjustments, the highest performing (and most valuable) employees were paid above market.

Not one key employee has been lost due to salary issues in the past 3 years.

The company now has a structure, current and competitive pay guidelines.
Managers and employees better understand why they make what they make.

Learn how we helped improve low morale in a non-profit organization.

Comments are closed.