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Business Analysis of Quadio Labs Ltd Company

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Quadio Devices (now known as Quadio Labs Pvt Ltd) was formed in Oct 2009 and was focused on providing affordable yet Quality health care solutions through its hearing Aid products. The Company is into developing the product, manufacturing and sales. Quadio was conceived on the idea of creating platforms and developing products to help people manage sound better. Quadio has an in-house R&D centre to build in depth knowledge in domain and leverage it to create solutions. Its marketing is focused on taking these solutions to people in innovative ways. Quadio’s beliefs revolved around integrity, Innovation, and creativity.

Compensation strategy at Quadio

Quadio Devices is a start-up with an office staff of 50 people. It also had around 5 to 6 consultants who offered consultancy services on contracts of 6 months to a year. Being a start –up Quadio had devised compensations based on proper market study so that it would help it in getting the right talent. The philosophy of the Company was to provide a pay scale which would allow the Company to retain this talent and keep its staff motivated so at to achieve its business goals. The Compensation Structure was created based on market structures. It was a start –up so there were positions that were created to help in the growth of business. Initially the Company’s strategy was to attract talent from any pharma or health care related companies so they took market information for creating compensations scales based on that, but as the it started entering the market it realized that it had to take in people who had the background in hearing aid companies as this was a niche area and the talent pool required was to be aware of how the hearing aid industry worked. So initially the study was done on Pharma and health care industries’ compensation structures and its positions but was later changed to study its own kind of other hearing aid companies. The entire departments with the required staff the designations that would suit the positions were all designed from scratch. For designing this market study was done and similar companies were taken into consideration.

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Quadio was into Hearing Aid Manufacture as well as in parallel developing a Hearing Aid App so for this it was building a developer team ( Android App Developers & I Phone App developers) for this the salary structures of various Software companies was taken. For comparing various analysis was done through Pay scale database, also used consultants to gather information related to salaries being paid at competitive companies. The jobs positions were also studied as it was essential that Quadio could stand in comparison to the other competitors in the market.

Pay level & pay mix

The base pay was decided with respect to the data taken from Pay Scale Data base, as Pune cost of living was higher than major cities the Compensation structure was given enough weight age to this factor also in computing the structure and also some role value adjustment was done as decided by the management based on the analysis arrived. So based on the base pay with number of years of experience and their competency the salary was generated or grouped. Quadio was into services industry so there was no bulk hiring the entire hiring was job specific as per the requirements that were drawn out in the initial stage and new ones added as per the progress made. So every job was a specific job in Quadio there was no much generalization, but the competitive hearing aid company’s salary structures helped them come-up with their own Compensation structure.

Grade levels

The Organization did not have any Grade levels done, so it was more that the positions were based on the educational qualification, their competency and the number of years of services. The structure consisted of the Following Positions which could be grouped as Senior / Middle/ Junior Staff. Senior Level consisted of positions like COO, CTO, Marketing Head, Regional Head, Head of Audiology, Head and Production Head Middle Level consisted of positions like Area Managers, Managers (Audiology), Finance Manager, HR – Manager etc Junior Level had positions like Developers, Programmers, Engineers, and Sales Executives. Based on the individual’s qualification knowledge and experience the pay structure was defined which was made with comparison to the relevant competitive market. The Compensation structure was fairly on the higher side then what was offered by the competitors as Qaudio was a start –up and it was an essential factor for attracting the relevant talent. As there were no structured Grade level present with Quadio promotion to a different designation was based on performance and promotions were made on yearly basis as the Company was expanding in different cities it need to recruit more talent and the staff that were employed for a year or so who had shown good potential and helped in developing new markets were promoted on these basis.

Compensation structure – its role – in hr systems

Recruitments: Quadio offered above the median of the market hence it was able to make significant progress in hiring people at a better rate. As many of its positions were job specific it did not create much disturbance in the existing roles with the Company.

Attrition: Attrition rate was less than 10% in Quadio and this was only at the junior levels.

Performance Appraisal System: The Performance Appraisal system was well developed, it was done every six months and included a self appraisal system with feedback from peers and cross functional team leads and managers wherever the role required cross functional interactions. Increments in salary were based on the appraisal ratings arrived. The Sales and Marketing teams had variable pay structures which were measured based on the set targets and also on the revenue made by the Company. Variable pay was made on yearly basis, also to the Sales Executives and Audiologist incentives were given based on the patient’s/ customer’s generated leading to a complete closure that is making a complete sale which also involved administrating the device with no complaints from the patient/customer.

Compensation Policy : Quadio did not have a specific policy written towards it remuneration but it believed in paying as per the best market standards which would reflect and relate to the current market percentile and would stand a little better than its competitors so as to attract the best talent to itself. The goal was to see to it that there was fairness in its compensation structure that is the same job gets paid equally or better but not less. The Compensation structure covered all the Senior, Middle and Junior Management and Staff inclusively. Its structure was based on the Company’s performance (revenue generated). As variable and incentive structures were in place for Sales and Marketing, the yearly increments were at lower % then the R&D or other Software roles who received a higher % in yearly increments. This way there was a balance maintained in the entire compensation structures. The support staff received increments as per the prevailing industry’s standards.

Salary Structure

The Salary Structure consisted of (1) Basic Pay, (2) Benefits and Allowances (3) Retirement Benefits (4) Variable Pay (for Sales and Marketing Roles). Basic salary 50% of Gross Transportation allowance As Per IT Slab House Rent Allowance (HRA) 40% of Basic Leave Travel Allowance (LTA) 15000(standard for all) Medical reimbursement 15000( standard for all) Other payments Difference amount Gross Salary (A ) Retirement Benefits PF (Employers Contribution) Total CTC

Variable pay – Based on Individual performance and company’s overall performance (only for Sales & Marketing Staff)

Incentives – Based on monthly targets met pd monthly these varied as for each complete transaction or sale done a specific amount was set, and minimum number of closures were given for the month to each. Other then the above CTC the Company gave two more benefits which were to all the staff there was no discretion in the same.

Standard Medical Insurance Policy to the individual

Gym Benefits – Employer paid 65% and employee had to pay 35% of the annual gym charges

The above Gym plan worked very well with the employees as the age group consisted of 26 – 40 years. For the Sales and Marketing Heads the Variable Component was introduced as a separate line item and the targets given were discussed individually, but a maximum limit of the Variable pay was set for the year this was arrived by weighing the maximum that would justify based on the doable targets set. Market Expansion and generating revenue through collaborations with Hospitals or Major Health Care Services was one of the key result areas that was on focus for the Sales and Marketing Heads for getting the variable pay. Incentives were introduced for Sales Executives and Audiologist who would be having the customer leads provided by the Area Sales Managers. Incentive also was mentioned as separate line items. So other then the basic pay and allowances incentives and Variable pay were introduced to motivate better Sales performance leading to better revenues for the Company.

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