The Evolution of a Compensation Strategy

Case Study: Using eeCompensation to sustain growth

Company overview and background

From their founding in 2010, it became very apparent that the unique vision, technological sophistication, and unique approach to compensation for early-in employees had driven this transportation services company to its 2014 levels: 2,000+ employees operating in 42 countries and multi-billion dollar valuations. What also became apparent was the need to revamp their compensation strategy and best practices in a way that would conform to every in-process plan while enabling the development and deployment of a compensation strategy able to sustain their ongoing growth.

Early employees were hired under a compensation umbrella defined by a high-level CEO conviction; employees will make their financial returns with the success of the company through equity, rather than base salary or short-term cash bonuses. Many early-in employees took significant reductions in cash compensation from their former employer to join the team. Anticipated, but not planned for, was the eventual need to define and implement an overarching compensation strategy that would weave together the previous “equity first hyper growth approach” with a much needed go-forward “growth sustaining” strategy.

The Challenges to be met

The company hired its first head of compensation and HRIS team early in 2014. At that time there was no comprehensive compensation strategy, no experienced compensation team and no technology or systems in place. The newly hired team selected Workday for HRMIS, and eeCompensation for compensation planning and review.

Strategically, the need to attract new employees with competitively structured cash compensation packages drove the company to redefine their approach. There was a fear on two fronts: the ability to attract new talent to sustain and fuel aggressive growth; and the need to protect and retain existing proven employees that had helped build the company.

Operationally, with so many new to the company and first time supervisory people on board, including in the chain of command, finding an intuitive tool to facilitate the review process was a paramount concern. With no operational review best practice in place, the task became focused on eliminating the potential for chaos ahead while minimizing the dependency on manual intervention, hand-holding and preventing errors from entering the process, all while keeping with their revised compensation strategy.

Starting the Journey

eeCompensation was chosen primarily because of its abilitiesy to:

Driving Long-Term Success

eeCompensation was rolled out globally to the entire employee population for the 2015 compensation planning cycle with great success despite the relatively new team, the new planning process, and the large numbers of first-time managers who were new to compensation planning processes at any organization.

This organization is now well placed to continue aligning their internal compensation structures while driving towards their future growth targets.

Results from our work

One strategy and a singular global best practice

“It took me minutes to accomplish with eeCompensation what has previously taken hours with spreadsheets"

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Unique Compensation Strategy Requirements

"eeCompensation is a very user-friendly system which has greatly helped us streamline our compensation review processes"

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Sustaining global growth with eeCompensation

"The need to attract new employees with competitively structured cash compensation packages drove us to redefine our approach"

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