Disclaimer

This success story is based on a recent Reward Management consultation project with a company within the plantation sector that Maslow has successfully completed between August to December 2022 and obtained buy-off from the Company’s Nomination and Remuneration Committee (NRC).

Introduction

In today’s competitive landscape, companies must continuously evolve to attract and retain top talent. As a globally and locally renowned boutique plantation company, it is well recognized on the urgent need to revamp its job grading and salary structure to align with market standards and support its 2025 Vision. Alongside the collaboration and cooperation with Maslow Trainers & Consultants Sdn. Bhd. (Maslow), the Company has managed to achieve transformation towards its Reward Management System in fostering fairness, transparency, and sustainable growth.

The Challenge: Navigating Inconsistencies and Wage Inequities

Before the transformation, the Company has faced significant challenges in its job and reward structure in terms of:

• Inconsistent Job Grading: The same job levels had different titles across various business units, leading to role ambiguity and limited career progression.
• Multiple Salary Structures: Different reward policies across business units created administrative confusion and disparities.
• Wage Inequities: The increase in Malaysia’s minimum wage exposed salary compression issues, with long-serving employees earning the same as new hires.
• Talent Mobility Restrictions: Significant salary variances between HQ and estate jobs hindered internal mobility.

The Solution: A Data-Driven, Market-Aligned Approach

The Company has engaged Maslow as a Strategic HR Business Partner to address these challenges, which included the transformation processes of:

1. Job Evaluation: A structured analysis using Hay’s Job Scoring Methodology ensured accurate job grading based on role complexity and impact.
2. Salary Benchmarking: Market data was analyzed against three benchmark points: general market, plantation sector, and a custom peer group, ensuring competitive positioning.
3. Standardized Grading & Salary Framework: A streamlined job grading system was introduced, reducing career stagnation and facilitating talent movement.
4. Equity-Driven Compensation Adjustments: A two-step salary adjustment strategy ensured wage fairness while maintaining financial sustainability.

Key Achievements & Impact

Through these strategic initiatives, the Company was able to achieve remarkable outcomes:

• Standardized Job Grading: Simplified from 22 levels to a structured framework that enhances career mobility.
• Market-Competitive Salary Structure: The Company’s pay positioning improved, reducing wage inequities and increasing employee satisfaction.
• Greater Transparency & Fairness: Employees now have a clear understanding of salary progression and career growth opportunities.
• Smoother Talent Mobility: The uniform pay framework enables seamless internal job transitions, reducing recruitment costs and enhancing workforce agility.
• Sustainable Growth: By aligning its reward system with its 2025 Vision, the Company is now in better position to attract and retain top talent while maintaining financial stability.

Final Thoughts: A Blueprint for HR Excellence

The Company’s journey is a testament to how strategic HR interventions can drive business transformation. By partnering with Maslow and adopting a data-driven approach, the Company has successfully positioned itself as a competitive employer in the plantation sector.

For organizations seeking to revamp their compensation structures, this success story proves that with the right strategy and expert guidance, achieving workforce excellence is possible and vital.

Interested in optimizing your reward management system? Let’s talk!

How Maslow Can Help

At Maslow, our Reward Management solutions empower organizations with the right tools and data-driven insights to implement effective salary benchmarking, ensuring pay equity, talent retention, and business success.