Ericsson Case Study

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Ericsson

Ericsson Australia implements R.Review, Remesys' web-based remuneration system, to manage the review of salaries and incentives to improve data security and data management and provide a better experience for its managers.

"Not only did R.Review address the key areas that we had identified for improvement in our review processes, but extra software features, such as generated recommendations and automated letter production, were highly beneficial and were well received by our managers."
Colin Pritchard, Manager - Performance and Reward

Ericsson

COMPANY:
Ericsson Australia Pty Ltd

Headquartered in Sweden, Ericsson is the world's leading provider of technology and services to telecom operators. Doing business in more than 175 countries, Ericsson generated revenue of USD 27.9 billion in 2007.

INDUSTRY:
Telecommunications

EMPLOYEES:
Over 1,650 employees in Australia and New Zealand

SOLUTION:
R.Review replaced spreadsheets as a means to review salaries and incentives

KEY BENEFITS:

* Externally hosted system through secure Internet portal

* A single data source

* Generated recommendations based on merit and a market data matrix

* Integrity of data maintained

* Standard reports plus ability to extract to excel

* Improved alignment between job families and market data

* Letters produced from the system so no requirement for mail merge

* Improved process meant more time for manager education

* Used this solution as a platform to revamp the broader recognition and reward portfolio

* Changed the perception of HR/Rem improving the credibility of HR

The Need to Change the Existing Process
Ericsson Australia had previously used spreadsheets for its salary and incentive reviews. Internally created spreadsheets were provided to managers for the process of making recommendations. Managers then returned completed spreadsheets to the HR function for consolidation, verification and analysis.

Maintaining data integrity presented a challenge due to the multiple versions of spreadsheets. Use of multiple spreadsheets also presented a security concern - due to the non-robust nature of password protection and the use of potentially insecure locations for saving files. Feedback from Ericsson's managers regarding the spreadsheet system suggested that there was a need to change from this approach and that managers would be open to an alternative solution.

Seeking to find a more secure and flexible approach to their remuneration review process, Ericsson recognised that their existing method of using internally created spreadsheets could be made more effective through the use of a web-based hosted system.

The Solution
Ericsson implemented R.Review, a web-based solution, in order to streamline the process. R.Review provides managers with secure access, via a web browser, to all the information needed to complete salary and incentive reviews for their team members.

The Key Benefits
R.Review improved the remuneration review process for Ericsson and provided a number of benefits including:

Secure internet access to an externally hosted system;
Greater visibility of data for line managers;
Automated salary and incentive recommendations;
A simple approval and rejection process for 2-up managers when considering their managers' recommendations;
Standard reports available as well as export function (in excel);
Letter generation directly from R.Review; and
Improved process allowing the HR/Rem team to spend more time on line manager education.

The Experience

Ericsson was impressed with Remesys and found the Remesys Consultants to be clearly committed to the product. Ericsson found that Remesys' understanding of their internal remuneration process, content, culture and objectives was testament to the company not selling an application in a vaccuum. Interaction was responsibe and seamless at all times.

“Feedback has been very positive.”

Colin Pritchard, Manager - Performance and Reward

“Online real time update of information is excellent." & "The Remesys tool is a good initiative and makes the line manager's job much easier.”

Ericsson Line Managers

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