Bridging the Compensation Gap: How Tailored Benchmarking Solved a Multinational's Talent Woes
The client is a Singapore-based integrated oil company employing approximately 50 staff locally. Operating as a subsidiary of a larger Chinese parent corporation, the Singapore office followed compensation and benefits structures largely derived from headquarters.
As the company expanded its local operations, management sought to better understand how its employment offering compared with prevailing Singapore market practices.
The Challenge:
Global Structure Applied Locally
Compensation and benefits were aligned to global policies rather than local Singapore norms, resulting in gaps between the company’s offering and competitor practices.
Talent Attraction and Retention Constraints
Differences in leave structure, bonus design, and medical coverage affected hiring competitiveness in Singapore’s energy and trading market.
Limited Market Visibility
The client required reliable benchmarking data across comparable oil, trading, and energy firms to understand its position relative to both direct competitors and aspirational employers.
Our Approach:
Comprehensive Market Benchmarking
We conducted a comprehensive survey of competitors, including companies of similar size, business activities, top-tier firms, and those the client aimed to hire from. The review covered organisations of similar size and operating model, as well as larger established firms and aspirational employers competing for the same talent pool.
Total Rewards Analysis
Rather than focusing solely on base salary, the assessment examined the full compensation framework, including Annual Wage Supplement (AWS), leave entitlement structures, medical and insurance coverage, and supplementary benefits. Particular attention was given to progression policies tied to seniority and tenure.
Gap Identification and Market Positioning
We consolidated the findings into a clear gap analysis, comparing the client’s existing framework against prevailing market norms. This highlighted structural misalignments that affected competitiveness in hiring and retention.
Phased Implementation Strategy
Recommendations were calibrated to balance competitiveness with financial sustainability. We outlined a staged adoption plan, allowing the client to progressively align with market standards while managing budget impact.
Ongoing Review Framework
To ensure long-term relevance, we advised on establishing a structured internal review process to monitor compensation trends and adjust policies in line with evolving Singapore market conditions.
Insurance Coverage:
The client initially provided minimal health coverage for employees. Our survey showed that 90% of competitors covered both employees and dependents, with comprehensive plans including GP outpatient, accident, hospitalisation, and life insurance. Competitors also offered additional benefits such as Traditional Chinese Medicine coverage, dental, optical, mental health support, fitness subsidies, and Employee Assistance Programs (EAPs).
Recommendations
Based on our findings, we proposed a comprehensive strategy to align the client's offerings with market standards:
- Increase leave to exceed the market average of 19 days, adjusted for seniority.
Introduce one-month AWS.
Expand health coverage to include dependents and comprehensive plans for employees.
- Gradually introduce additional benefits such as dental and optical coverage, and flexi-benefits like fitness subsidies and EAPs.
The Outcome:
Following implementation of selected recommendations, the client reported improved alignment with Singapore market practices. Recruitment engagement improved, and internal workforce stability increased relative to prior periods.
The engagement also established an ongoing benchmarking framework to support future compensation reviews as market conditions evolve.
Key Success Factors
- Our compensation report was tailored specifically to the client's unique situation and goals.
We collaborated closely with senior management to ensure alignment with strategic objectives.
- Our unique industry network allowed us to gather accurate, current primary data..
Including top-tier players as part of an aspirational benchmarking analysis positioned the client to attract high-calibre talent.
- Recommending a phased implementation of additional benefits allowed for budgetary flexibility.
Concluding Thoughts:
This case study demonstrates the power of a data-driven, customised approach to compensation benchmarking. The result was a significant improvement in their ability to attract, retain, and motivate top talent in a competitive market.
Our unique value proposition lies in our ability to deliver bespoke, comprehensive compensation intelligence that goes beyond surface-level data. By combining deep industry knowledge, extensive networks, and strategic insights, we empower our clients to make informed decisions that drive real business results.