Homogenization of the elements of the variable remuneration system of the competitor’s staff to match those defined by the Company (MSCT)
Context:
Both the Company and one of its competitors were losing market share and, therefore, competitive position in the HORECA channel to the main player in the market. In view of this situation and in order to halt the loss of competitive position, the Company adopted a series of measures, including: (i) the design of a new distribution model for the HORECA channel, which included an agreement with one of its competitors, (ii) the redesign of the Company’s target positioning and new product strategy, and (iii) a change in the Company’s remuneration model.
How we helped:
During the project:
- We explained the distribution agreement signed between the Company and one of its competitors, for the distribution of the competitor’s brands in the Horeca channel, as well as (i) the objectives of this alliance and (ii) the competitive advantages and efficiencies that the new distribution model was intended to achieve.
- We explained the new distribution model for each province.
- We defined the Company’s target positioning and the new business strategy.
- We explained Horeca’s new variable remuneration system: (i) the elements that make up the Company’s variable remuneration system and (ii) the benefits obtained from these elements.
- We explained the consequences of the Company’s variable remuneration system resulting from the integration of staff from the competitor: (i) heterogeneity, (ii) ineffectiveness and inefficiency, (iii) difficulty in aligning with the new product portfolio strategy, (iv) operational difficulty, etc.
Following the preparation of the technical report, we attended meetings with the Works Council to present the findings of the report and answer their questions and doubts. An agreement was reached with the Works Committee.
Result:
Substantial Modification of Working Conditions successfully implemented.