CASE STUDY: CAIRN ENERGY
Improved staff retention through industry pay benchmarking analysis.
The training was thoroughly researched, well presented and was also great fun.
- Jann Brown, Financial Controller, Cairn Energy
Background
Cairn Energy, an oil and gas company based in Scotland, was having difficulty in recruiting and retaining key technical staff. It wanted to understand its position in the industry with regards to pay and benefits
First steps
Wildcat One carried out external research to analyse industry pay and benefits practices and levels. Internally, steps were taken to identify and understand the critical issues in recruitment and retention. The company's strengths and weaknesses were assessed against its market aspirations for pay.
The solution
Wildcat One cross-referenced various sources of data to produce an accurate picture of the company's position. Apparent anomalies in existing internal pay levels were highlighted. A strategic set of proposals was formulated for the Executive Directors including practical and financially realistic recommendations for:
- Repositioning pay levels to match benchmarked core skill areas (primarily geologists and geophysicists)
- Addressing areas of potential future vulnerability due to shortage of appropriate skills in the local market
- Addressing existing anomalies within the company
- Devising pay policies for all disciplines in the company
Results
The remuneration committee immediately implemented the strategy for addressing internal pay anomalies and accepted the recommendations for future pay policies. Annual monitoring of pay levels in the market has become part of the Cairn's remuneration strategy. The company is now recognised as one which pays well within the industry and continually attracts high-calibre people to work for it.