How we helped the fast-growing Global Automotive Component Manufacturing in Compensation & Benefits Benchmarking across multiple geographies in India and 115 data points
Client
About the Client
ADVIK Hi-Tech Private Limited (AHPL) is one of India's leading & Global automotive components manufacturers catering to the needs of a number of domestic and overseas customers across the four continents in the two-wheeler, stationary engine, and transmission system segment for the past twelve years.
They provide custom-made solutions for customer’s designs, keeping in mind their needs and specifications serving customers across India, Europe, UK, US and ASEAN Region.
Website: https://www.advik.co.in/
Problem
The Management Team intended to plan their Compensation & Benefits Strategy and wanted to conduct a benchmarking exercise across companies in the industry in Pune & Bangalore. They also wanted to reduce attrition and increase average employee tenure by creating differentiation in their compensation and benefits practices.
Project Timeline
February 2023 - May 2023
Project Title
How we helped a fast-growing Global Automotive Component Manufacturing in Compensation & Benefits Benchmarking across multiple geographies in India and 115 data points
Approach and Findings
We had interactions with key members of the HR team to understand the functions of different departments and unique roles. We studied the hiring requirements for each role such as education, experience, salary levels, etc. to have a deeper understanding of the role.
We analysed data for each location across parameters such as levels, experience, education, promotions, appraisals, joining bonuses, and functional delta. We compared attrition data, years of experience of an employee and appraisals data across departments & levels to identify trends & patterns.
Based on the functional understanding and data analysis, we planned the approach and data sources to conduct the benchmarking and finalised the companies that we would want to benchmark against for electrical and mechanical departments for different locations. Some of the parameters covered in the benchmarking included salary structure for corporate and plant functions, leave policy, notice period, working hours, working days, bonuses, and benefits such as transport facilities, canteen facilities, insurance, and more.
Work Done
We delivered the following during the project:
We delivered the following during the project.
- 1. Understood the functions and roles of different mechanical and electrical departments.
- 2. Analysed salary and increment data for the past 4 years to understand trends and patterns across industries. We categorised this data by tenure with Advik and the total number of years of experience to further understand the data.
- 3. Identified the primary data collection methods and secondary sources of data for benchmarking.
- 4. We connected with various employees from different companies and HR team members to collect the primary data.
- 5. Collected data from secondary sources such as various websites, job portals, study reports, etc.
- 6. We then compared the primary and secondary data collected and identified the various compensation and benefits offered by different companies at various levels. We also mapped roles based on equivalent roles and responsibilities at Advik.
- 7. We compared the data from external benchmarking with internal analysis and presented the differences to the management for compensation for each location, level and department. Likewise, we also presented the benefits data to the management separately for corporate and plant functions.
- 8. Based on the benchmarking, recommended the practices to be adopted and adapted for compensation and benefits benchmarking to create a differentiation.
Outcome
Advik has adopted the recommendations and has created a detailed plan of action to implement the same. They aim to be the preferred choice of potential talent in Pune and Bangalore as they aim to further grow the company multi-fold.
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