Colgate-Palmolive: Determining a Salary Offer
(3 pages of text)
In March 2012, the head of compensation for Colgate-Palmolive (India) Limited was reviewing five resumes. He had been asked to determine appropriate pay scales for the five candidates, and he knew that the decision had ramifications far beyond the salary of a few employees. The giant corporation, which was well established in India, had opened other plants in India in the past, but the new toothbrush factory in Sri City had just started operations. The head of compensation would need to define an appropriate pay philosophy and strategy that would enable the organization to attract, motivate, and retain the right talent for the Sri City plant. That strategy would have to be consistent with the existing culture at Colgate-Palmolive (India) Limited.
This case is suitable for undergraduate- and graduate-level courses on compensation management, organizational behaviour, or human resources management. The case can be used to discuss the three aspects of any compensation design: internal alignment, external alignment, and salary suitability. After working through the case and assignment questions, students will be able to do the following:
- Determine a compensation philosophy and strategy for a plant, considering environmental conditions and business strategy.
- Design a job evaluation plan using compensable factors that are aligned to the organizational strategy and business realities.
- Use the technique of policy capturing to determine weights of compensable factors.
- Explain the process of job matching using publicly available databases (e.g., O*NET OnLine) and consulting products (e.g., Aon Hewitt Limited’s level mapping and position codes).
- Analyze an industry’s compensation benchmarking report and determine pay levels and pay ranges for each grade in an organization within this industry.
- Describe the dynamics involved in determining an appropriate salary for experienced candidates, while matching the candidate’s requests with the organization’s pay policy.
India, Large, 2012
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download