Headcount Diagnostic & Compensation Benchmarking for a Real Estate Group

Client Situation

The client, headquartered in the UAE, offers diverse services and products throughout the UAE and GCC and employs over 12,000 people. The group is engaged in four core business sectors – construction, commercial, investments and real estate across a total of more than 20 companies. In order to optimize its human resource across all functions, the client was planning to conduct a headcount diagnostic and develop an improved compensation strategy.

Cedar’s Approach

The client mandated Cedar with studying headcount allocations in 6 departments within its real estate division to redeploy excessive headcount, if any, to other businesses. Additionally, the client asked Cedar to develop a ‘market-benchmarked’ compensation strategy. Cedar divided the program into modules, with the following activities conducted:

• Headcount Diagnostic
1. 35 organizational processes in identified areas were reviewed and a process catalogue was created
2. Reviewed existing SOPs and interviewed 15-20 relevant employees to understand the process flow and analyze productivity
3. Process mapping and identification of gaps and overlaps in roles, responsibilities and touchpoints through JD analyses was conducted
4. External benchmarking study based through primary interviews on headcount, turnaround times and volumes across the functions for key benchmark positions
5. Recommendation of headcount per function based on benchmarking and best market practices
• Compensation Strategy
1. Compensation data, including last payroll, salary, grade alignment, policies and procedures were analysed
2. Relevant data of competitors’ compensation practices and establishment of benchmarks were collected
3. Variances were compared analytically
4. The recommendations were integrated & presented to the board

Outcome

Some of the key outcomes of this program were as follows:

• Headcount Diagnostic
1. Identification of relevant industry benchmarks for headcounts, key process activities and roles and comparison with the client’s corresponding metrics
2. Targets was recalibrated to reduce variance between actuals and benchmarks
3. Overlaps were identified in roles through job description analysis across the key processes of budgeting, accounting, budget control, accounts payables/receivables, MIS and IT to locate inefficiencies
4. Demarcation of clear roles for productivity enhancement were recommended
5. Provision of guidance on headcount alignment, such as redeployment of 8 excess full-time employees from the business development, property management and finance functions
• Compensation Strategy
1. End of service benefits and mobile reimbursements were recommended to be provided to select employee categories as per market best practices
2. Annual bonus needed better alignment with the appraisal process
3. Allowance ratio was to be largely in line with the market benchmark
4. Development of an improved compensation structure was formulated covering basic pay, guaranteed allowance including house rent allowance, conveyance and other reasonable allowances & variable allowance including annual performance pay and sales incentives
5. Recommendation of an average of 60:40 cash split between basic pay and allowances with an overall 8% correction in fixed salary pay-outs