We were very happy with hukaroi's support in our project, and that in different areas: legal know-how, payroll calculations and simulations, and strategic approach. Jochen is a pleasant person, solution-oriented, positive and constructive and very flexible. He understood Lidwina and adapted his proposals to our company.

~ Annelies Heens, HR Manager

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About Lidwina

Lidwina is a custom-built company whose mission is to help people distant from the labor market grow in their talents and competencies through employment.

Lidwina wants to be the reference in the Kempen in terms of customization, by focusing on maximum satisfaction of employees, environment and customers and by taking sustainability as a guiding principle.

To learn more, visit www.lidwina.eu

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Challenges

Lidwina, partly at the request of the trade union delegation, had a job weighting, benchmark and job classification drawn up for the support staff.

Every HR and payroll policy carries with it a certain history, requiring periodic review. Just think of new positions added over the years.

To ensure that every employee is fairly remunerated, both with respect to Lidwina employees among themselves and with respect to the labor market, Lidwina has proposed a new pay structure for blue and white collar workers.

The new pay structure might be coherent and consistent, but what would be the budgetary impact?

The budget challenge was twofold:

• How should the new pay house be designed so that it is budget feasible, not only in the short term, but also in 2028?
• What is the financial impact of the new payhouse compared to the old payhouse over the years?

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Solution

The new wage house was not yet fixed in advance. Taking into account the budgetary impact, the new wage house had to be further concretized.

That means we calculated dozens of scenarios, where each parameter had to be adaptable and its budgetary impact simulated.

Those parameters include determining the midpoint, minima and maxima per job class, the manner and rate at which one automatically increases in pay on top of the index, the tension between the job classes themselves, the scaling of the current population of employees in the new pay structure, etc.

Wage is not a static fact. No, pay is dynamic. Over the years, employees evolve through the wage house. Employee pay evolves, either automatically year after year or based on merit pay increases. Or a combination of the two systems.

Each parameter has an impact on the budget in 2023, 2024, ... through 2028. In doing so, it was crucial to contrast the financial impact of the new payhouse with the financial impact of the old payhouse.

These calculations have brought two major benefits to Lidwina:

• The outcome of these calculations and scenarios gave Lidwina's management comfort that the decisions they would make would be sustainable in the long term for Lidwina and for future management.
• With the data-driven approach, Lidwina's management was able to convince both the Board of Directors and the union delegation to confidently go along with the new wage structure and the phasing out of the old one.