CASE STUDY

Salary benchmarking and introduction of enhanced salary bands

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Project Scope
  • Conducting salary benchmarking (including selecting the right external benchmark provider)

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Use Cases
  • Salary grading/grading system
  • Salary benchmark
  • Salary bands/salary structure

"Friday/Poppins helped us further develop our compensation system, ensuring a market-aligned and responsible salary structure. The collaboration was very smooth, and we greatly benefited from Friday/Poppins' expertise and high standard of efficiency."
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Anna-Lisa Obermann

Head of People

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Challenges
  • Digital Service required benchmarks for very different ecosystems: the private sector market and the TVöD, to ensure a market-oriented and, as a federal company, a responsible salary system.
  • With approximately 150 employees subject to a uniform salary band, a more explicit representation of different salary levels based on functions was required.
  • To ensure alignment with the principles of efficiency, competitiveness, fairness, and comparability in new hires and salary adjustments, a review and potential expansion of the salary band based on market data was necessary.
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Solution
  • Selecting the right external benchmark provider
  • Developing a new level/grading structure
  • Benchmarking with the private sector and the TVöD
  • Creation and implementation of a new salary structure with salary bands based on grading levels
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Impact

The salary benchmark helps Digital Service, as a federal company, achieve the following goals:

  • Ensuring a fair salary structure, presenting expected hiring salaries and salary development for Digital Service roles based on external data.
  • Assessing competitiveness in the Berlin job market to attract and retain qualified employees.

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