BUSN369 APA_6th_template_Guerrero_M2-1.docx

Compensation and appraisal systems 19 compen sating

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Compensation and Appraisal Systems 19
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“Compen- sating employees around the world presents a major challenge to today’s multinational corporation because the cost of living dramatically differs around the globe.” [Gas142] Comparing Figures 7 and 8, compensation at Accenture and IBM in the United States, versus Figure 6, compensation in India, reveal dramatically different salary structures reflecting a large difference in the cost of living between India and the United States. The salaries above the national average in Figure 6 reflect the intense competition in India between multinational companies trying to attract employees. Human Resource managers in India feel that despite companies’ innovative efforts to attract and retain employees, they feel employee loyalty is low and they will shift for higher pay [MUR13]. A comparison of Accenture salaries with its largest competitor IBM, in the United States, paints a picture of parity. Accenture pays its employees an average of $113,596 a year. Salaries at Accenture range from an average of $81,505 to $172,500 a year[Pay18]. “Accenture employees with the job title 20 Figure 7: Accenture Total Compensation Percentile $81,505 Average $113,596 75 th Percentile $136,690 Top Earners $172,500 Figure 6: Accenture versus IBM Salaries in India (in Rupees) Position Title Accenture IBM In $ Software Engineer 396,631 (19% above national average) $5,578 Senior Software Engineer 733,926 (16% above average) $9,428 Software Test Engineer 440,322 (61% above national average) $5,672 Fig ure 8: IBM Total Compensation 5 th Percentile $79,618 Average $108,212 75 th Percentile $129,266 Top Earners $160,769
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Senior Managing Director make the most with an average annual salary of $386,910, and employees with the title Claims Processor make the least with an average annual salary of $30,594.” [Pay18] How do Accenture salaries compare to their strongest competitor IBM? IBM employees earn an average of $108,212, ranging from $79,618 at the 25th percentile to $129,266 at the 75% percentile, with top earners (the top 10%) earning more than $160,769. A small sampling of salaries from Glassdoor in Appendix C confirms PayScale’s information [Gla16]. Most positions are comparable, with variances ranging between $2K-$5K between analysts, SAP, data scientist, computer specialist, and technology consultant positions. Performance Appraisal. “Cultural norms, rules, and legal differences help to influence how performance appraisals are conducted around the world.” [Gas142] Accenture was one of the first companies to change their performance review process which was originally based on an annual feedback and rating system. Pierre Nanterme, Accenture’s Chief Executive Officer, announced that the new system will be based on immediate and regular feedback aimed at achieving goals and employee development. Instead of feedback annually, employees receive actionable feedback quarterly or at the end of each project. This helps to eliminate cultural differences as feedback can be adapted to a country’s norm. For example, Gaspar explains that in Mexico, the norm is not to dispense negative feedback at the outset, but only after giving some positive feedback first [Gas142].
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  • Fall '16
  • Vanessa Moses
  • Andersen Consulting, Accenture Consulting, Accenture Digital, Accenture Technology, Accenture Labs

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