In eight months' time, we have successfully established a well-functioning compensation & benefits model with Sunweb and they are ready for further international growth.
"It's a Sunweb holiday" is probably a familiar tune you often hear on TV and radio. The name is well known as a travel organisation, with several brand names that are part of the Sunweb Group. But a classic travel agency is no longer Sunweb. We book our trips and everything around them online. To facilitate this for its customers, Sunweb is changing and operating more like an e-commerce organisation, offering not only a fantastic travel experience but also a great online experience before, during and after your trip.
With offices in six different countries and a change to a more online e-commerce organisation, Sunweb was no longer able to work with their existing salary framework and salary increase model. There was a strong desire for a well-designed compensation & benefit model, appropriate in different countries, to be ready for further international growth. We grasped this assignment with both hands.
Project targets
We have formulated the goals for this project together with Sunweb. They are:
- We create a compensation & benefits vision and design principles to fit all offices
- We benchmark all salaries and from that benchmark create a new Salary Framework
- We deliver a salary increase method appropriate to the vision and organisation, driven by development and not by performance
- We are creating an overview of the various current benefits across countries in order to structure this.
The Design Principles that we created together with Sunweb's management act as a stepping stone and give us and the stakeholders something to hold on to during the rest of the process. The VIE way of working is based on co-creation: During two workshops in which we collected a lot of information from the management, but also returned a lot of knowledge about compensation & benefits, we jointly created the Design Principles.
Parallel to the workshops, we started benchmarking in the background, testing the salaries against the market. This provides you with insights into how you currently pay your employees, but it also gives you a tremendous amount of data to draw up a Salary Framework.
In addition, during this phase, we also started thinking about an innovative way of increasing salaries, where the development and growth of people is rewarded rather than the performance delivered.
A complete compensation & benefits model
After eight months, all goals have been achieved. There is a vision on compensation & benefits, but even more important, there is a Salary Framework in which all the almost 200 roles of Sunweb are classified. In addition, with an innovative calculation method, this Salary Framework was converted into six different versions, one for each country with a Sunweb office.
A Salary Framework tells you what the range is within which you can grow, but not yet how you can make that growth. To answer that question, we designed a raise methodology that allows employees to earn salary increases based on their growth and development steps. This creates a more development-focused culture, where employees think about their development, are constantly working on it, and take the lead in their own development process. In return, Sunweb gets progressive, enthusiastic and passionate employees.
In the end, we achieved all the goals and implemented the designed frameworks and practices, and Sunweb is ready to scale up. A great experience and for VIE it really was a Sunweb holiday.