Egg processing company that was formed in 2014 through a partnership between two independently successful egg processing companies and a private equity firm which purchased the operations from a national food company. The newly formed egg processing company has approximately 320 employees located in two geographically separate locations. The company’s revenue stream originates from the production and sale of multiple whole egg varieties to retail locations as well as franchise partners.

The Situation

The company had adopted the pay practices and salary scale from the prior ownership entity.  As there had been no recent salary survey conducted, the scale had remained unchanged since 2012.   Merit increases were given on an annual basis based on performance reviews and a budgeted percentage.  The company had an annual bonus program which was part of the compensation package for some exempt level employees, but others were excluded as were all hourly employees.  The company wanted a comprehensive review of their pay practices to assess the compensation program in comparison to the two owner companies, as well as with any national data to ensure they remained competitive within the industry.

The Deliverables

  • Determine if salary ranges, rates and average salaries were competitive to those of the owner companies as well as the industry.
  • Review the company’s merit increase methodology and assess if based on industry best practices there should be adjustments.
  • Review the company’s bonus structure, evaluate the positions which received the bonus, and verify if the program was delivering the intended result of inspiring an entrepreneurial mindset among the staff.

The Results Achieved

  • An assessment of the overall compensation program was provided to the Board of Directors and Management to address misalignments and set the stage for any strategic planning necessary to ensure that the company would be a preferred employer in the region and industry.
  • A comprehensive review of 18 exempt level positions was performed with recommendations for changes within several pay grades.
  • Recommendations and examples were provided for the development of a career ladder, annual compensation review program, and a spot bonus program.
  • The payout period for the bonus program was adjust to a bi-annual basis to capitalize on the motivational factor of an incentive.

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