Scope:
Our client, a prominent player in the UAE's oil & gas industry, sought to revamp its Compensation & Benefits framework including a pay benchmarking excercise with peer companies. The objectives were:
- To ensure a consistent and fair pay structure across all positions.
- To benchmark remuneration practices with the oil & gas sector in the UAE.
- To develop a framework that complies with UAE labor laws and aligns with the company's strategic objectives.
Challenges:
1. Internal Job Grading: The company had inconsistencies in job grading, leading to challenges in maintaining pay equity and competitiveness.
2. External Pay Benchmarking: Aligning their remuneration practices with the broader oil & gas industry required a thorough market analysis.
3. Policy Compliance: The new framework needed to adhere to UAE labor laws and industry-specific requirements.
Our Approach:
1. Job Evaluation:
- Conducted job analysis meetings with stakeholders to understand job roles, responsibilities, and requirements.
- Reviewed job descriptions to ensure clarity and consistency, forming a basis for the job evaluation process.
2. Grading Exercise:
- Applied a globally recognized job evaluation method for a structured job grading exercise. This involved scoring roles based on compensable factors.
- Developed a structured job grading system to ensure internal equity across all positions.
3. External Salary Benchmarking:
- Carried out a comprehensive salary & benefits benchmarking study, comparing the pay structure against peer organizations in the oil & gas sector in UAE.
- Reviewed compensation and benefits practices within the industry to identify gaps and provide recommendations for improvement.
4. Developing the Compensation & Benefits Framework:
- Proposed a revised pay scale based on internal grading and external benchmarking to ensure the company remains competitive.
- Recommended allowances and benefits packages in line with market practices and UAE labor law.
- Developed comprehensive Pay & Benefits policies, covering salary reviews, promotions, and benefits, tailored to the specific needs of the oil & gas sector.
5. Implementation:
- Conducted a detailed cost analysis to assess the financial impact of the proposed Compensation & Benefits framework, ensuring its feasibility and sustainability within the company’s budget.
Results:
The newly developed Pay & Benefits structure provided the company with a clear, market-aligned compensation structure. By implementing the grading exercise, internal equity was achieved, while external benchmarking ensured that the company remained competitive in attracting and retaining talent. The introduction of Compensation & Benefits policies provided a transparent and structured approach to managing salaries, allowances, and benefits in compliance with UAE labor laws.
Conclusion:
Tuscan Consulting successfully assisted the client in developing a comprehensive Remuneration & Benefits framework tailored to the oil & gas sector's needs. Our approach, encompassing job evaluation, grading, pay benchmarking, and cost analysis, delivered a robust and sustainable compensation structure, supporting the company's strategic goals and compliance requirements.
