Year of Incorporation:
QSS Safety Products
Background of company
QSS Safety Products (S) Pte Ltd (QSS) specialises in providing a comprehensive range of Personal Protective Equipment and Quality Safety Solutions in Singapore. They are the Original Equipment Manufacturers (OEM) of their own in-house brands, and are also distributors of other global safety products. QSS also provides consultancy and training services to enhance and improve workplace safety. Being a progressive company, it is part of QSS’s culture to be vocal and proactive in learning. The company encourages continuous learning, and engages external trainers and consultants to provide training on personal development and skills improvement to employees.
Lack of a compensation and benefits framework
Prior to their use of the HR Capability Toolkit, QSS did not have an aligned framework for its base pay structure. All that existed was a job grade/level pay guide used within the company without any benchmarking exercise undertaken. This lack of alignment had resulted in employees being underpaid in some instances, and overpaid in others as QSS was not able to revise salaries relative to economic fluctuations. In addition, pay increments to employees were perceived to have been given arbitrarily as there was no communication provided to them of any adjustments before they were undertaken. The lack of a framework had also resulted in a difficulty by QSS to implement a MVC element for its employees to reduce its operating costs in times of economic challenges.
Compensation benchmarking and alignment exercise
After undertaking a consultancy project under the HR Capability Programme, QSS started following salary guidelines (Min/Max Ratio) to enhance its framework for staff compensation. This framework was benchmarked against market data and had a minimum/maximum pay range. QSS felt this was a more useful and reliable structure to follow, as they were able to use the framework to benchmark salaries on an annual basis, and to make corresponding adjustments to job offers for perspective employees in line with market remuneration fluctuations. The exercise also allowed the company to conduct an alignment exercise to identify any variances in salaries for employees within the same job grade, and to increase the wages for impacted employees who have joined at a lower salary base if deemed appropriate.
The project undertaken by SNEF consultants also helped the company to become more systematic when offering annual salary increments. It now sends out a letter to its employees notifying them of changes when salary increments are made.
Implementation of MVC and performance-based pay
As part of the project, the company also implemented the Monthly Variable Component (MVC) scheme for its employees. This step allows QSS to retain the variable component of employee wages during a financial crisis, thus helping to strengthen the wage flexibility of the company. As a result of implementing this measure, the company is able to be more competitive within the industry.
Due to the specialised nature of its business, QSS Safety follows the guidelines and templates provided in the HR Capability Toolkit for Performance Bonus and Sales commissions, but uses its own formula for computation.
Being progressive in its HR practices coupled with an excellent culture of continuous learning has enabled QSS to further develop and improve its HR System from a basic to a more comprehensive and integrated system to assist in day to day operations.