TM - August 2008 - (Page 49)

Figure 1: Motorola S-Grade Global Structure Role/Family Account Representatives Account Managers Channel Managers Key Account Managers Market Development Managers Solution Sales Consultants Pre-sales Technical Architects Pre-sales Technical Management Supervisor/Inside Sales Management Sales Management S1 S2 S3 S4 S5 S6 Figure 2: Varying Salary Grade Structure The sales rewards team guided a subset of the steering committee in deﬁning job families and job descriptions that represent each business and reA – Low mix 80/20 0%-35% of base salary gions’ diverse needs. Job levels were deﬁned to facilitate B – Moderate mix 70/30 36%-55% of base salary future market analysis. Reducing the number of job levC – High mix 60/40 56%-75% of base salary els and moving to broader job descriptions and grade levels D – Very high mix 50/50 76% of base salary or more represented a better market match in most countries; job Additionally, the committee believed a new grade descriptions from a variety of market-survey providers structure would support alignment with the market became a starting point. and increase conﬁdence that the rewards package was A global structure emerged from several months of internally equitable and externally competitive. collaborative work with leaders from sales, HR and ﬁDeﬁning a common global job hierarchy and pay nance: the Motorola S-grade structure. (See Figure 1.) grade structure to support the broad diversity of selling roles in more than 60 countries and implementing Once the number of job families and levels was deﬁned, the new structures in the same year was an ambitious Motorola had to manage the diversity of selling roles. goal. It was clear from the beginning the small team The salary/incentive mix (e.g., percent of pay at target of sales rewards consultants would need support. Mo- performance from salary vs. commission) varied by torola partner Hewitt Associates supported develop- role within each business and region, with mix levels ment of a market competitive job hierarchy and pay as conservative as 80/20 and as aggressive as 50/50. grade structure. Historically, the same salary grades were used regardWhile the U.S. market data was reliable and easily in- less of mix, resulting in high salaries with target incenterpreted, there were many gaps in the market data tive amounts that were low, relative to the market in outside of the U.S. The regional rewards teams required many countries. Motorola needed to deﬁne a structural assistance to meet the aggressive timeline. Hewitt component to shift the focus from salary levels to topartnered with region rewards to gather market data tal target cash levels. This would support the internal and understand the local labor market, ﬁlling the gaps equity of compensation for employees assigned to the same jobs and grade levels, even at different salary/inwith global data. centive mix levels. In smaller countries where the market data was less reliable and Motorola’s sales head count was fewer The solution was a salary grade structure that varied than 15, the relationship between the current pay within level, based on the salary/incentive mix. (See Figgrade structure and that of similar countries was used ure 2.) Every grade level was assigned to four separate salary structures, A-D. Employees in career level S3 were to establish new structures. Structure Name and Typical Mix Range of Target Incentive Amounts Possible for Salary Structure August 2008 APPLICATION continued on page 56 talent management magazine www.talentmgt.com 49 http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of TM - August 2008

TM - August 2008 Editor's Letter Contents Human Performance Leading Edge Foundations Global Background Screening Does Global Assessment Work? Global Total Renumeration: Creat One Organization Border Insecurity: Immigration Reform and Talent Management The Global Workforce: Communication Across Cultures Around the World in How Many Days? Insight: Exelon: Performance Under Pressure Special Report: Perspectives on Managing People Application: Reinventing Sales Rewards at Motorola Dashboard: Mideast Meets West Dashboard: Mergers and Acquisitions 2008 - Don’t Leave Employees Behind Editorial Resources Advertisers' Index Full Potential

TM - August 2008

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