Benchmarking Compensation for Retention

An HR analytics project was carried out to do a benchmarking study for the Compensation and Benefit program. The organization faced challenges with retaining top talent due to non-competitive compensation and benefits, resulting in a high turnover rate of 18% at Senior Manager and above level and increased recruitment costs of INR 54 lacs annually. The team benchmarked salaries and benefits against industry standards, implemented equitable pay structures, and enhanced the benefits package by adding performance-based incentives, ESOPs and flexible work options. Additionally, the team introduced transparent communication strategies to ensure employees understood their compensation benefits. As a result, the compensation packages became industry-aligned, reducing turnover to 10% and improving employee satisfaction scores by 20%. This alignment not only enhanced employee retention but also positioned the company as a competitive employer in the market.