What did the client need?
Our client, a prominent player in the UAE's oil & gas industry, sought to revamp its Compensation & Benefits framework including a pay benchmarking exercise with peer companies. The objectives were:
- To build 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 labour laws and aligns with the company's strategic objectives.
What challenges did the project face?
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 labour laws and industry-specific requirements.
How did Tuscan approach the project?
1. Job Evaluation:
- Conducted job analysis meetings with stakeholders to understand job roles, responsibilities, and requirements.
- Reviewed job descriptions for 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 keep pay fair 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 keep the company competitive.
- Recommended allowances and benefits packages in line with market practices and UAE labour law.
- Developed comprehensive Pay & Benefits policies, covering salary reviews, promotions, and benefits, designed for 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, to confirm it was affordable and sustainable within the company’s budget.
What were the 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 kept the company 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 labour laws.
What made the difference?
Tuscan Consulting successfully assisted the client in developing a comprehensive Remuneration & Benefits framework built for the oil & gas sector's needs. Our approach, encompassing job evaluation, grading, pay benchmarking, and cost analysis, delivered a strong, sustainable pay structure, supporting the company's strategic goals and compliance requirements.
Frequently asked questions
What problem did the oil and gas company face?
Its job grades were inconsistent and its pay was drifting away from the market, which made fair decisions on pay hard.
What did Tuscan deliver?
Every role was evaluated and graded, pay was benchmarked against sector peers, and a new pay and benefits framework was designed and costed to fit the budget.
Can Tuscan run a similar project for my organisation?
