Case study
Compensation grid redesign
A national services firm needed salary bands and KPI gates that matched board profit targets without breaching award rates.
We audited 400 roles against Modern Awards, benchmarked market medians, and linked variable pay to divisional EBITDA floors.
Pilot bands rolled out in two divisions first; payroll was reconciled each review cycle before national expansion. Managers received KPI conversation guides tied to the new gates.
"Managers finally had clear rules for bonuses. Fair Work queries dropped within two review cycles."
Did you renegotiate the EBA?
No EBA applied; work focused on award-covered roles and contract harmonisation.
How were KPIs linked to pay?
Variable pay gates required divisional EBITDA floors and individual KPIs documented in the scheme rules.
Was payroll reconciled?
Yes—each review cycle included payroll reconciliation against new bands before national rollout continued.
Rollout approach
Pilot bands in two divisions, manager training on KPI gates, then national rollout over two review cycles with payroll reconciliation each cycle.
Every band was tested against Modern Award minimums before publication; exceptions were documented with legal review.
Results tracked
Payroll dispute volume fell 22% within two review cycles; managers reported clearer rules for bonus decisions.
What changed for managers
Bonus gates moved from discretionary narrative to documented KPI thresholds tied to divisional EBITDA floors. Conversation guides standardised review meetings so outcomes were comparable across regions.
Redesign compensation
Share headcount and award coverage.