Medical Protection Society

Their challenge

When Innecto began working with MPS, the organisation was going through a significant period of transformation, aiming to become more performance focused and commercial in its approach. It was clear that any reward frameworks in place were not supporting the new business aspirations of being a world class service provider. There was little market intelligence on pay and benefits, pay decisions were inconsistent, and the appraisal system and bonus scheme in place were not linked to tangible objectives or used to recognise real contribution. This had created a sense of unfairness particularly among newer employees and the Remuneration Committee (RemCom) and Board were keen to develop a new reward map that would deliver a more performance related approach to pay and a commercially focused total reward structure.

Our solution

To support MPS through this journey, Innecto began by conducting a reward discovery process, to establish the true picture of pay and of employee perceptions; this became the ‘bedrock’ for the project. By helping the MPS project team to identify their goals and guiding principles using our reward pillars, we were able to create a reward map outlining their future destination. We facilitated training for the RemCom and conducted a bespoke executive pay benchmarking analysis. As part of this we helped MPS identify a group of competitors that would provide more appropriate benchmarks for executives than off-the-shelf pay surveys could provide. The wider pay benchmarking project allowed us to identify areas with a significant spread of salaries and recommend better market positioning. Our job evaluation tool, Evaluate™, became a foundation for the new pay structure and the Evaluate™ levels were incorporated into the design of MPS’s new variable pay scheme.

The outcome

The outcome of the total reward project has had a significantly positive impact on employee engagement. MPS’s latest engagement survey revealed an increase of at least 15% on the previous year, for factors such as having clear aims and objectives, knowing how well the organisation is performing and receiving thanks and praise for good work. The project has also helped MPS develop a clear narrative around its equal pay position so the organisation is in good stead for the upcoming mandatory gender pay reporting. MPS now has a solid framework that is understood by the business and employees. It provides objectivity, consistency and fairness and has allowed variable pay and performance management to come into their own as the key differentiators, supporting MPS’s need for a more commercial and performance led outlook on reward.