COMPENSATION MANAGEMENT

Submitted to- Dr. Mousumi Sengupta

Submitted by-Group No:05

20107-Shalmali

20109-Shreya Hegde

CASE 2: 20112-Sinchana T K

20113- Sofi Kushalappa M

SOCIAL SALARY 20114-Soumya Kurtkoti

SETTING AT SPIBER
20115-Sree Sowmya Pukkella

20128- Amrutha Anil

20148- Komal Vashistha
 SUMMARY
Spiber Is a company that makes synthetic silk built from proteins mimicking the proteins found in spider silk, the
world’s toughest material known by weight.

There was growing demand in apparel market for sustainable materials that did not rely on petroleum -based fibers,
& spiber was planning to expand the use of synthetic protein fibers in outdoor attire & casual wear. They were also
going to expand to the auto parts market.

The fundamental motivation of spiber was to create technology to help to switch to renewable resources.

The executive team wanted the company’s compensation system to match the organizations values.

The company implemented a unique salary setting process designed to inspire autonomy and responsibility among
employees.

After receiving data each employee was given responsibility of writing a report known as “Reason Document”.
COMPANY BACKGROUND
The co-founders incorporated Spiber in September 2007, they succeeded
in making the first synthetic silk fiber protein materials.

Through Spiber’s Novel Technology, scientists first conducted a research

on various species of spider. They determined the specific amino acid
properties.

The company’s initial goal was to develop its technology to improve

production quality, reduce costs, & become commercially competitive.

Spiber’s successful creation was a proprietary protein material based on

spider fibroin.

The company Dubbed the material QMONOS, Japanese word “spider Web”.
 BUSINESS CHALLENGES
The central challenge spiber
The company had given stock
faced was how to reduce its
options to employees in the
production cost while maintain
past & was planning to give
desirable properties for final
stock options in near future.
material produced.

A related challenge spiber Monetary compensation was

faced was how to motivate its also a critical component of
talented and ambitious the company’s motivational
workforce. strategy.
 Reasons For Implementing the System
(original compensation system)

Executive team decided Spiber then moved onto a Achievement and Abilities
employee salaries. set your own salary model Report

Spiber had relatively few Employees started to Executive team began to

employees but turned out express frustration at the contemplate how they
to not be feasible as the lack of transparency in this could redesign spiber’s
company grew. compensation system. compensation system.
 Compensation System After 2014

1st policy-2014 2 policy-2016

Employees’ declaring tentative salary Employees’ declaring tentative
number followed by a formal salary number accompanied by a
discussion with at least five colleagues ‘Reason Document’

3rd policy-2018

Employees’ declaring tentative salary

number accompanied by a ‘Reason
Document’ followed by two weeks of
consensus- building conversations with
at least one colleague
 Reasons to Adopt Social Salary by the
Management

Motivate the employees and Make the employees feel

simultaneously enforce the important and make them Share the responsibility in
assessing the value
mission vision and believe that they played a
objectives prominent role in the
overall organization
 Issues Within the Social Salary System

1 2 3

Inappropriate evaluation by Gaps between salary and Improper feedback and

61.3% of the employees. perceived value to the reluctancy from the
company employees’ side to evaluate
themselves.
RECOMMENDATIONS

• Training the employees • More executive teams to assist

on assessing the right each department.
compensation.

• Feedback on • Have a salary range for the job

performance evaluation positions based on t industry
by the immediate average.
managers
 LEARNINGS
Companies should adopt a fair and transparent
evaluation and remuneration system to gain
employees’ confidence in the company.

Employees will have different opinions about

the compensation system. Ultimately the
management needs to adopt a system that is
feasible for the company as well as the
employees.

The evaluation system must be well-

communicated to the employees beforehand.
 
THANK YOU