CASE STUDY
New e-reward case study - Virgin Media: Managing reward following merger
Entertainment organisation, Virgin Media, is emerging from a period of major organisational restructuring, dating back to its formation out of a merger in 2006 of Telewest and ntl and then the acquisition of Virgin Mobile in 2007. This restructuring has presented huge challenges of integration, and has taken place in the context of significant changes in the senior leadership team, conflicting policies that were not always aligned to business values and major differences in the terms and conditions, job titles and roles and reward policies of the merged operations.
In this case study, researched and written by e-reward, we examine:
The business context and challenges Virgin Media faced - in particular, the implications for managing and rationalising the disparate reward arrangements across the three companies that came together in the newly merged organisation so that everyone could be treated fairly and the reward system would be transparent.
The “road map” used by the company, designed to make the newly merged organisation “simply brilliant”.
How senior management buy-in was secured and the role played by a Business Engagement Group.
The introduction of a job family structure comprising 15 job families, each with three levels, a descriptor and a series of generic role profiles. This was the third and final stage of a complex roll out (phases one and two concentrated on the senior levels of management).
The involvement and consultation process.
The support provided to line managers.
New performance management arrangements.
The lessons learnt.
REPORT CONTENTS
Introduction
Overview and organisation profile
Emerging from a merger:
Differing benefits and terms and conditions
Differing job titles and roles
Pay policy and a debt burden
Road map to being “simply brilliant”
Job families and the birth of “Pathfinder”
Starting with executives
Employee forum has key role
Management champions
Developing “Pathfinder”
BEG is born
Consultation mid-2010
Transition arrangements:
Removal of legacy perk cars and perk car allowances
Removal of private fuel benefit
Healthcare standardised
Bonuses linked to job role
Individual consultation
Supporting line managers
Performance management
“Where are we now?”
Lessons learnt
LIST OF DOCUMENT EXTRACTS
Virgin Media’s reward vision and philosophy
Reward opportunities: Line manager education module
LIST OF BOXES
Job families at Virgin Media – levels, descriptors and typical generic roles
Personal performance scale 2010
Reward framework progress
Pathfinder and the introduction of job families
Want to know more?
Title: "Virgin Media: Managing reward following merger", eresearch 78, April 2011, published by e-reward.co.uk Ltd.
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